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In this video, the speaker discusses the importance of contracts in design projects, emphasizing that they are not a lawyer and are sharing personal experiences rather than legal advice. They define two key components of a design project: the proposal and the contract (or terms and conditions). The proposal details the project goals, deliverables, timeline, phases of work, and fees. The speaker plans to provide further details about proposals in a future video. Overall, the discussion aims to highlight the necessity of having a contract to establish clear expectations and safeguard both parties involved in a design project.