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A photo booth contract is a legal agreement regulating the rental of portable photo booths that capture images and produce polaroid-style photos, ideal for various events like weddings and corporate functions. Despite the prevalence of cell phone cameras, traditional photo booths remain popular. For photo booth operators, using a contract for each rental is advisable, ensuring clear terms and conditions. The video, presented by e-forms, emphasizes the importance of these contracts and hints at a customizable photo booth template available at the end.