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In this video, the speaker discusses essential elements that a design contract should include, highlighting the distinction between proposals and contracts. Proposals outline project objectives, scope of work, phases, activities, timeline, and pricing. In contrast, contracts are legal documents detailing the terms and conditions of the project, serving as a safeguard in case of disputes. The speaker emphasizes that this information is not legal advice but shares elements he incorporates into his design contract to ensure viewers are informed when drafting their own.