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In this video tutorial, the necessity of a contract for freelance social media managers is discussed, with a strong recommendation to use one. Key elements to include in a contract are pricing details, starting and ending dates of the engagement, and cancellation procedures. The video also addresses the process of creating and signing the contract, noting that both the freelancer and the client are responsible for its terms. A real-life example of a contract used by the presenter will be shared. Viewers are encouraged to subscribe and engage with the content for more insights on managing contracts effectively.