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In this video tutorial, Matthew explains how to create a DJ contract using Legal Templates. He provides a link to access Legal Templates and guides viewers to navigate to the "Business Forms" section, where they can use the search function to find the DJ contract template quickly. Matthew emphasizes that the transaction typically involves the sale of services rather than goods, with the DJ providing the service. He also notes that the contract will require details about the DJ and the buyer, which may include personal information.