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In this video tutorial, the speaker discusses the topic of whether contracts are necessary for agencies. They explain that contracts can sometimes be ineffective and not hold up in certain situations. The speaker provides tangible examples of when contracts may not be binding. Beginners often stress over contracts, thinking they are a guaranteed way to ensure payment from clients. However, the speaker emphasizes that contracts may not always protect both parties as expected. While contracts are important to have, they may not always guarantee outcomes as believed.