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In this video, the host discusses a legal issue where a client was sued for $70,000 due to a copyrighted image used by their designer on a website. This led the client to sue the designer, creating a complicated situation. The host aims to provide guidance to prevent similar scenarios. They clarify that they are not a lawyer and cannot offer legal advice, emphasizing the importance of consulting an attorney regarding contracts. The video introduces a contract template used for web design projects, which can serve as a solid foundation, allowing users to customize it with additional details or legalities as needed.