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The video discusses the implications of contracts for gifted children under 18, such as potential supermodels, film stars, musicians, social media influencers, or athletes. While these contracts can help families financially, there are important legal considerations. Most states have laws stating that minors cannot be held to contracts, making such agreements potentially unenforceable for the child. However, the contracts often include a clause that holds the parents or guardians liable, allowing them to be accountable for the agreement. This creates a scenario where the guardians are responsible, while the minor retains certain protections under the law.