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In this video, the client was sued for $70,000 over a copyrighted image on their website, which their designer had used. The client then sued the designer in response, leading to a complicated situation. The video aims to provide tips on avoiding similar legal issues. The speaker emphasizes that they are not a lawyer and cannot offer legal advice, but they share their own contract template used for web design projects as a starting point for creating a solid legal agreement. It is recommended to consult with an attorney for specific legal advice related to contracts.