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In this tutorial, the presenter explains the distinction between an invoice and a legal contract for contractors in California. Many contractors misunderstand these two documents, so the presenter uses examples to clarify. An invoice contains the contractor's and client's information and details the work being performed for payment. However, it serves merely as a receipt and offers no legal protection. In contrast, a home improvement contract is essential for work on existing residential properties and is applicable to various trades, including landscaping, electrical work, plumbing, and roofing. This contract provides legal protection and outlines the terms of the work being performed.
