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In this tutorial, Matthew explains how to create an interior design contract online using legal templates. He provides a link to the templates in the video description. First, he navigates to the business forms section and uses the search function to find the interior design contract. After selecting the relevant option, he previews the PDF format of the contract. Matthew indicates that the transaction involves the sale of services, specifically related to interior design. He highlights that viewers need to fill in their information as the service provider and the customer's details, which are essential for completing the contract.