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In this video, the speaker discusses the essential elements of a design contract, differentiating it from proposals. Proposals cover project objectives, scope of work, phases, activities, timelines, and pricing, while contracts are legal documents that outline the project's terms and conditions, serving as a protective measure. The speaker emphasizes that contracts are crucial for legal protection in case issues arise. They note that the following information is based on personal experience and not legal advice. Key elements of a design contract that every designer should include are highlighted for listeners’ awareness.