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In this video tutorial, the speaker discusses the difference between proposals and contracts in design projects. Proposals outline the project's objectives, scope, phases, activities, timeline, and price. Contracts, on the other hand, are legal documents that detail the terms and conditions of the project, serving as a legal protection if issues arise. The speaker shares key elements that should be included in a design contract, emphasizing the importance of being legally prepared. Note that the speaker is not a lawyer and the video is not legal advice.