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As a freelance social media manager, it is essential to have a contract in place to outline important details such as pricing, start and end dates, and cancellation terms. The social media manager is responsible for setting the contract themselves and may use tools for sending and signing it. In this video, a real-life example of a contract used by the speaker is shared. Having a contract is strongly recommended for clear communication and protection of both parties involved in the work relationship. Remember to subscribe and like the video if you find the content valuable.