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In this video tutorial, Drew Bowers Auger discusses essential contracts for consulting. He emphasizes the importance of a consulting agreement to prevent disputes regarding billing and engagement. Key components of the agreement include confirming the client is hiring your business as an independent contractor, stipulating payment amounts and frequency, acceptable payment methods, and obtaining signatures from both parties. He provides sample consulting agreement templates and notes that contracts often favor the party that drafted them. It's preferable to have clients sign your contract. If required to sign their contract, it's crucial to read it thoroughly and ensure clarity on rate, billing frequency, and project completion, addressing any disagreements with the client.