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The video discusses the legal aspects of contracts in the context of a coaching business, emphasizing their primary role in clarifying the intent of involved parties in case of disputes. It reassures coaches not to worry excessively about contracts, as they are not strictly necessary for legal protection. The speaker, a former corporate lawyer, explains that contracts serve mainly to inform a judge about what was intended by the parties in case of conflict. Using the example of purchasing a baguette, he illustrates that everyday transactions don't require written contracts to be valid, highlighting that an agreement exists through the act of exchange itself.