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When hiring an independent contractor, it may be necessary for businesses to have them sign a non-disclosure agreement (NDA) to protect confidential trade secrets. There are two types of NDAs: unilateral and mutual. A mutual NDA involves both parties sharing confidential information they wish to protect, while a unilateral NDA involves only one party sharing information. The primary purpose of an NDA is to prevent unauthorized disclosure of confidential information. Key considerations for NDAs include limiting the information to what is genuinely confidential and essential to keep secret.