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The client was sued for $70,000 for using a copyrighted image his designer had placed on the website. The client then sued the designer, leading to a legal mess. In the video, the speaker discusses the importance of having a solid contract in place for web design projects to avoid such nightmare situations. The speaker provides a template contract that can be customized and used as a foundation for creating legally sound agreements. It is emphasized that legal advice should be sought from a qualified attorney when dealing with contracts.
