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Supply Chain Management Professional (SCMP) · Question

What is the main purpose of a non-disclosure agreement (NDA) in a supplier relationship?

An NDA legally binds parties to protect sensitive and proprietary information shared during discussions or collaborations.

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Question: What is the main purpose of a non-disclosure agreement (NDA) in a supplier relationship?

Answer options:

  • To guarantee specific delivery timelines
  • To formalize pricing agreements ✅ To protect confidential information shared between parties
  • To establish payment terms and conditions

Correct answer: To protect confidential information shared between parties

Explanation: An NDA legally binds parties to protect sensitive and proprietary information shared during discussions or collaborations.

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