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A behavior contract outlines expectations for a child, addressing specific behavioral issues and setting realistic yet challenging goals. It includes rewards for meeting these goals and consequences for not doing so. For instance, if a child struggles with homework submission, the contract might require a 90% submission rate to earn rewards like extra playtime. Behavior contracts can take various forms, such as formal agreements or sticker charts, and daily report cards from teachers. The key is finding a format that effectively supports the child and works for the family. The video aims to explore the different types of behavior contracts and their benefits.