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In this tutorial, Matu explains how to create a nanny contract using Legal Templates. To begin, viewers should click on the provided link to access legaltemplates.net, then navigate to the "business forms" section. Instead of scrolling through numerous options, Matu suggests using the search function to find specific contracts. He clarifies that the nanny service is a service agreement, emphasizing the importance of including the provider's information accurately. The buyer refers to the customer or those being cared for (like the baby). Matu highlights the need to clearly describe the services being provided in the contract without overcomplicating the information.