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In this tutorial, the speaker clarifies the distinction between an invoice and a legal contract for contractors in California. Many contractors mistakenly equate invoices with contracts. An invoice contains the contractor's and client's information and outlines the work done and payment received; however, it serves only as proof of payment, lacking legal protection. In contrast, a home improvement contract is necessary for residential properties and provides legal safeguards. This type of contract is relevant for various trades, including landscaping, electrical work, plumbing, and roofing, specifically for existing residential properties.
