Question

The it department in a technology company is finalizing an agreement with a cloud service provider to host sensitive customer data. the company's legal team is drafting the contract, which includes a service level agreement (sla) and a non-disclosure agreement (nda). which of the following explanations most accurately demonstrates the primary purpose of including an nda in the contract with the cloud service provider?

A) To specify the quality and availability of the services provided.
B) To outline the responsibilities and obligations of each party in the agreement.
C) To ensure that the cloud service provider does not disclose or misuse sensitive customer data.
D) To establish the timeframe for the agreement and any associated penalties for non-compliance.

Answer 1

An NDA within a contract with a cloud service provider primarily ensures the provider will not disclose or misuse sensitive customer data, creating a confidential relationship to uphold data privacy and security.

Step-by-step explanation:

The primary purpose of including a Non-Disclosure Agreement (NDA) in the contract with a cloud service provider is to ensure that the cloud service provider does not disclose or misuse sensitive customer data. An NDA is a legal contract that creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. Therefore, in the context of a technology company hosting sensitive customer data with a cloud service provider, the NDA serves as an essential document that legally binds the provider to keep the data secure and private.