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In this tutorial, Matthew explains how to create an interior design contract using legal templates available online. He provides a link to these templates in the video description. By navigating to the "business forms" section and searching for "interior design," users can easily find the relevant contract template. After previewing the PDF of the interior design contract, he discusses filling out essential details, such as identifying the type of transaction (service), the service provider's information (usually the designer), and the customer's information. The tutorial emphasizes the importance of specifying the service being offered.