A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legally binding contract that establishes a confidential relationship between two or more parties. The purpose of an NDA is to protect sensitive information and intellectual property by outlining in detail what information must remain private and what information can be shared or released to the public. NDAs are used to protect non-public business information, trade secrets, and other confidential information. An NDA can be unilateral, involving two parties where only one party anticipates disclosing certain information to the other party, or multilateral, involving three or more parties where at least one of the parties anticipates disclosing information to the other parties. The information covered by an NDA can be unlimited, ranging from test results to system specifications to customer lists and sales figures. Key elements of an NDA include the identification of the participants, definition of what is considered to be confidential, duration of the confidentiality commitment, and exclusions from confidential protection. If an NDA is breached, it is considered a serious offense and can result in legal action, including lawsuits, financial penalties, and even criminal charges.