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In this tutorial, Matthew explains how to create a painting contract using Legal Templates. He begins by directing viewers to a link for Legal Templates provided in the video's description. After clicking the link, he advises navigating to the business forms section and searching for "painting contract." Once found, he selects the option to create a document. He categorizes the transaction as a service, inputting the service provider's information and the customer's details. Matthew emphasizes the need to describe the service, which in this case involves a painting contract. He suggests specifying the project scope, including the number of projects and pricing for each.