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In this tutorial, Matthew demonstrates how to create an interior design contract online using legal templates. He directs viewers to find the link to legal templates in the video's description. By navigating to "Business Forms" and utilizing the search function for "interior design," he locates the relevant contract template. Matthew shows how to preview the PDF and proceed to fill it out, identifying the transaction type as a service for design offerings. He instructs viewers to input their information as the service provider and the customer details for the transaction.