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The video tutorial discusses the importance of creating a basic contract before starting freelance work to protect both parties involved. It emphasizes the need to send an estimate or contract to the client for approval to ensure alignment on the project scope and payment. Having a signed contract before starting the job is crucial to avoid misunderstandings and hold the client accountable. The tutorial provides a simple one-page contract template with key elements such as company logo, name, date, project description, payment terms, and cancellation policy.
