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In this video, the speaker discusses software development agreements, which are contracts between developers and clients for software creation. He introduces two main types of agreements based on development methodologies: Agile and Waterfall. The importance of precisely drafting clauses in these agreements is emphasized to avoid misunderstandings or mis-specifications regarding development expectations. Common clauses typically include client requirements, project timelines, and deliverables. The speaker also mentions potential pitfalls in software development that can occur if agreements are not clearly defined.