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In this tutorial on freelancing, the speaker discusses the distinction between contracts and proposals. He emphasizes that contracts are legal documents focused on the terms of the deal, detailing obligations and legal conditions. In contrast, proposals serve as sales documents aimed at convincing clients, outlining the project's scope, costs, and payment terms. While proposals also include some legal terms, their primary goal is to secure the agreement. Often, a proposal can function similarly to a contract, as it may encompass necessary terms for the deal. The speaker advises that this information should be considered freelance advice rather than legal counsel.