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When hiring an independent contractor, it's crucial to consider a non-disclosure agreement (NDA) to protect your confidential trade secrets that the contractor may access. There are two types of NDAs: unilateral, where only one party shares information, and mutual, where both parties share and seek protection for their confidential information. The purpose of an NDA is to prevent the disclosure of sensitive in-house information. When drafting an NDA, it is important to limit the information to only what is genuinely confidential and necessary to keep secret.