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In this tutorial, Elena from Team Rahul Dave discusses the significance of software development contracts in turning brilliant ideas into successful projects. She emphasizes that these contracts are more than just formalities; they are essential agreements between a company and a developer that outline the project requirements and timelines. Elena compares the contract to a rulebook for the software project. To highlight its importance, she references a real-life case where the absence of a clear contract resulted in major misunderstandings, underscoring the critical role these documents play in ensuring smooth project execution and communication.