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This video tutorial discusses the importance of using contracts in consulting to avoid billing disputes and clearly outline the terms of engagement. Key points to cover in a consulting agreement include the client hiring your business as an independent contractor, payment terms, acceptable payment methods, and signatures from both parties. It is recommended to have clients sign your contract, but if you have to sign their contract, make sure to review it carefully and discuss any disagreements or misunderstandings with the client. Minor modifications can be made to ensure that both parties are in agreement.