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In this video, Elena from Team Rahul Dave discusses the crucial role of software development contracts in the success of software projects. She explains that a software development contract is an agreement between a company and a developer, outlining the company’s requirements and the developer’s commitment to deliver the software within a specific timeframe. This contract serves as the "rulebook" for the project. Elena emphasizes that the absence of a clear contract can lead to significant misunderstandings, highlighting its importance in ensuring smooth execution and clarity in software development.