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In this video tutorial, Matu explains how to create a nanny contract using legal templates from legaltemplates.net. He instructs viewers to click on the link below the video to access the templates and search for "any contract." The contract should detail the service being offered, with the provider being the person creating the contract. The buyer is the customer or the person receiving the nanny services. The contract should include a description of the services provided and the duties of the nanny.