A Non-Disclosure Agreement (NDA) is a legally binding contract requiring parties to keep specified information confidential. Municipalities may use NDAs during property acquisition negotiations, vendor discussions, potential litigation settlements, or other situations where premature disclosure could harm municipal interests. NDAs can be mutual (both parties keep information confidential) or one-way (one party protects the other's information). Public sector NDAs must balance legitimate confidentiality needs against transparency obligations and freedom of information legislation. Courts may not enforce NDA terms that conflict with legal disclosure requirements. Staff should understand when NDAs are appropriate and ensure proper legal review before signing.