Data User Agreements (DUAs) are indispensable for securing sensitive information while enabling collaborative environments. They balance the need for innovation with regulatory scrutiny, financial losses, and reputational damage. DUAs are legal contracts that govern data use and disclosure, particularly in industries like healthcare where Limited Data Sets (LDS) containing protected information are shared. Key components of a DUA include permitted uses and disclosures, recipient responsibilities, re-identification prohibition, and breach remedies. Effective DUAs ensure compliance with regulations, manage risks in data sharing, build accountability and trust, and address challenges such as cross-border compliance and monitoring enforcement. Best practices for drafting DUAs include collaboration with legal experts, customization based on data type, and periodic reviews and updates. The future of DUAs is marked by emerging technologies like automation, AI-powered tools, and standardized agreements that simplify DUA management, enhance governance, and facilitate secure data collaboration.