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The video tutorial explains the importance of creating a contract when entering into a business relationship, even with family members. It outlines three simple steps to drafting a contract - introduction, details of the agreement, and terms and conditions. The introduction includes the title of the agreement, names, addresses, and date. It also includes details of the goods or services, price, and duration of the contract. It emphasizes the need to carefully consider the relationship and terms before drafting a contract.
