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The key difference between settling an affidavit and drafting a pleading is outlined in this video tutorial. Drafting a pleading involves creating a statement of claim or a reply to a statement of claim, which is typically a defense with a counterclaim. It is important to understand the distinction between drafting an affidavit and drafting a pleading, as they serve different purposes in a legal context. A pleading informs the court of the party's position, while an affidavit is a sworn statement used as evidence. Understanding these differences is crucial for both lawyers and non-lawyers involved in legal proceedings.