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In this video, the speaker discusses the necessity of contracts for agencies, highlighting that they can often be ineffective or not binding as many believe. Beginners frequently stress over contracts, mistakenly thinking they guarantee payment and enforce obligations among parties. The speaker argues that this perception is misleading and intends to provide tangible examples to illustrate their point. Despite the limitations of contracts, the speaker acknowledges that having one is still advisable, emphasizing its potential benefits while encouraging a realistic understanding of their enforceability in business situations.