Which of the following types of agreement creates a confidential relationship between the parties to
protect any type of confidential and proprietary information or a trade secret?

A.
SLA

B.
NDA

C.
Non-price competition

D.
CNC

Explanation:
A non-disclosure agreement (NDA) is a legal contract between at least two parties that outlines
confidential materials or knowledge the parties wish to share with one another for certain purposes,
but wish to restrict access to. It is a contract through which the parties agree not to disclose
information covered by the agreement. An NDA creates a confidential relationship between the
parties to protect any type of confidential and proprietary information or a trade secret.
Answer option D is incorrect. A non-compete clause or covenant not to compete (CNC), is a term
used in contract law under which one party (usually an employee) agrees to not pursue a similar
profession or trade in competition against another party (usually the employer).
Answer option A is incorrect. A service-level agreement (SLA) is a negotiated agreement between
two parties where one is the customer and the other is the service provider. It records a common
understanding about services, priorities, responsibilities, guarantees, and warranties.
Each area of service scope should have the ‘level of service’ defined. The SLA may specify the levels
of availability, serviceability, performance, operation, or other attributes of the service such as
billing.
Answer option C is incorrect. Non-price competition is a marketing strategy in which one firm tries to
distinguish its product or service from competing products on the basis of attributes like design and
workmanship.