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In this video, the speaker discusses a situation where a client was sued for $70,000 over a copyrighted image that their designer had used on their website, leading the client to sue the designer in turn. To prevent similar issues, the speaker emphasizes the importance of having a solid contract. They clarify that they are not an attorney and do not provide legal advice, recommending that individuals consult their own attorneys regarding contracts. The speaker then offers a contract template they use for web design projects, which can be customized with additional details and legalities, providing a solid foundation for future projects.