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A confidentiality agreement, often known as a non-disclosure agreement (NDA), is designed specifically to protect proprietary and sensitive information that one party shares with another during a business relationship. This legal contract ensures that the receiving party does not disclose or misuse the sensitive information for unauthorized purposes.

These agreements are vital in various scenarios, such as when businesses collaborate on projects, share trade secrets, or engage in negotiations where sensitive data is disclosed. By having a confidentiality agreement in place, parties can foster trust and open communication, knowing that their confidential information is legally protected.

The other options do not pertain to the primary function of a confidentiality agreement. Securing employee contracts, managing customer relations, and establishing work schedules involve different types of agreements or arrangements that serve distinct purposes in the context of business operations.