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In this tutorial, the speaker discusses the distinction between contracts and proposals in freelancing. They clarify that contracts are legal documents that outline the terms of the deal, detailing obligations and legalities. In contrast, proposals serve a sales purpose, focusing on persuading a client by explaining the project's details, costs, and benefits. Proposals often include terms similar to those in contracts, and in many cases, a proposal can act as a contract itself. The speaker emphasizes that their guidance is based on freelancing experience rather than legal expertise.