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In this tutorial, Elena from Team Rahul Dave discusses the importance of software development contracts, emphasizing they are more than just legal documents. A software development contract is an agreement between a company and a developer outlining requirements and timelines for a project, essentially serving as the rulebook for software development. The tutorial highlights how a lack of a clear contract can lead to misunderstandings, illustrating the critical nature of these documents in ensuring the successful execution of software projects. Elena encourages viewers to explore the intricacies of these contracts to better understand their significance.