NALA Certified Paralegal Practice Exam 2025 - Free Paralegal Practice Questions and Study Guide

The purpose of a non-disclosure agreement (NDA) is primarily to prevent one party from disclosing confidential information. When two parties enter into an NDA, they are legally bound to protect sensitive information shared between them. This is particularly important in business relationships, where trade secrets, proprietary information, or any classified data might be exchanged. By signing the NDA, the parties agree not to share this information with others, ensuring that the confidentiality of the disclosed information is maintained. NDAs are commonly used in various contexts, including employment relationships, partnerships, and business negotiations, to safeguard intellectual property and sensitive business data from being exposed to competitors or the public.

The other options do not accurately reflect the main function of an NDA. Sharing trade secrets between competitors would contradict the purpose of confidentiality. Ensuring public access to legal documents is typically governed by different legal frameworks and public records laws, which stand in contrast to the intentions behind an NDA. Lastly, while outlining the terms of a partnership can involve confidentiality, it is not the primary goal of a non-disclosure agreement; rather, NDAs are specifically focused on the protection of sensitive information.