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The video discusses the differences between contracts and proposals in freelancing. The speaker clarifies that they are not a lawyer and advises viewers to consider the information as general freelancer guidance. Contracts are described as legal documents detailing the terms of the deal, including obligations and legal stipulations. In contrast, proposals are sales-focused documents meant to persuade clients to agree to the deal, outlining costs and services provided. Proposals also often include terms similar to those in contracts, indicating that they can sometimes serve as contracts themselves.