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In this tutorial, Matu demonstrates how to create a nanny contract using Legal Templates. He begins by directing viewers to click the link below to access legaltemplates.net. Once there, he advises navigating to the "Business Forms" section at the top of the page and using the search function to find the desired contract type, rather than scrolling through numerous options. Matu explains that the contract will involve defining the service being offered, the provider's details, and the buyer's information. He emphasizes the importance of clearly describing the nanny services provided to avoid complications.