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In this video, the speaker discusses a legal nightmare where a client was sued for $70,000 due to a copyrighted image used by their designer on their website. The client then sued the designer, creating a chaotic situation. To prevent such issues, the speaker emphasizes the importance of having proper contracts in place. They clarify that they are not an attorney and do not provide legal advice, recommending that viewers consult a lawyer regarding contracts. The speaker shares a contract template they use for web design projects, which can be customized with additional details to help protect clients from similar legal troubles.