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In this video, the speaker discusses a problematic situation where a client was sued for $70,000 over a copyrighted image used by their designer on a website. This led the client to countersue the designer, creating chaos. The speaker emphasizes the importance of having proper contracts to avoid similar issues. They clarify that they are not an attorney and do not offer legal advice, recommending consultation with a legal professional concerning contracts. The speaker then shares a contract template used for web design projects, which serves as a solid foundation for customization with necessary details or legalities.