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In this video, Matthew guides viewers on how to create a painting contract using Legal Templates. He instructs to find the link provided in the video, navigate to the business forms section, and search for "painting contract." After selecting the "create document" option, users are prompted to indicate the transaction type, choosing "service" if they are providing the painting service. Matthew details the need to fill in personal information as the service provider, as well as the customer's details. He highlights describing the services included in the contract, such as painting a house or room, and mentions specifying the number of projects and pricing per project.