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The video tutorial discusses the importance of distinguishing between different types of contracts, as there are specific rules that apply to each type. Six types of contracts are covered, with the first distinction being between unilateral and bilateral contracts. In a unilateral contract, one party makes a promise while the other party performs an act. For example, if Jose promises to pay George $10 if George cleans Jose's driveway, once George cleans the driveway, the money is owed. In a bilateral contract, both parties promise something. In the same example, George promises to clean the driveway in return for Jose's promise to pay $10.
