Final answer:
An NDA helps ensure protection of confidential information, legal compliance, and prevention of unauthorized disclosure.
Step-by-step explanation:
When you ask a vendor to sign an NDA (Non-Disclosure Agreement), it helps to ensure all of the following:
- Protection of confidential information: An NDA ensures that the vendor will keep any sensitive or confidential information shared with them confidential and will not disclose it to unauthorized parties.
- Legal compliance: By signing an NDA, the vendor agrees to abide by the legal obligations outlined in the agreement, ensuring compliance with privacy laws.
- Prevention of unauthorized disclosure: The NDA establishes clear guidelines for the vendor regarding the disclosure of confidential information, preventing any unauthorized or inadvertent sharing of the information.