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In this video tutorial, Matthew explains how to create an interior design contract online using legal templates. He directs viewers to a link for legal templates and recommends navigating to the "business forms" section. By using the search function to find "interior design," he locates the relevant contract template. Matthew previews the PDF version of the contract before outlining the information required to complete it, including the type of transaction (service), the service provider's information (the designer), and the purchaser's details (the customer). He emphasizes that the contract should reflect the specifics of the interior design services offered.