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In this tutorial, Matthew explains how to create an interior design contract online using legal templates. He directs viewers to find the link for legal templates in the video description. By navigating to "business forms" and using the search function, he locates the interior design contract template. After previewing the PDF, he guides viewers through filling it out, starting with the type of transaction, which he categorizes as a service. Matthew advises providing your information as the service provider and identifying the customer purchasing the service.