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In this tutorial, the speaker explains the key differences between an invoice and a legal contract in California. Many contractors are unaware of these distinctions. An invoice contains the contractor's and client's information and outlines the work done and payments received, but it functions merely as a proof of payment, offering no legal protection. In contrast, a home improvement contract is essential for work on existing residential properties and is applicable to various trades like landscaping, electrical work, plumbing, and roofing. Understanding this difference is crucial for contractors to ensure proper legal protection.
