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In this video tutorial, Matthew explains how to create a home improvement contract entirely online using legal templates. He provides a link to legaltemplates.net for viewers to access the necessary forms. After navigating to the business forms section, he suggests using the search function to find the home improvement contract. The tutorial clarifies that the transaction involves the sale of services rather than goods. Matthew emphasizes the need to input information for both the service provider (the one offering the work) and the customer purchasing the service.