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A professional services agreement is established between an individual or company and a contractor who provides specific services. Professional services span various industries, including lawyers, electricians, carpenters, financial advisors, and architects. These services typically require specialized licenses or certifications. In contrast, consulting is generally not classified as a professional service. When hiring a contractor or engaging a new client, it's crucial to draft a solid contract that clarifies responsibilities, addresses expectations, and minimizes misunderstandings. By the video's end, viewers will learn how to obtain a free contract template.