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In this video, Thomas Lawyers discusses software development agreements, which are contracts where developers work to create software for a client. There are two main types of agreements: agile and waterfall methods. Each requires careful drafting to avoid misunderstandings or misinterpretations regarding development specifications, timelines, and requirements. Common clauses in software development agreements typically include details about client requirements, development timelines, and deliverables. The video emphasizes the importance of precision in these contracts to ensure clarity and avoid potential pitfalls in the software development process.