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In this tutorial, Matthew explains how to create a Memorandum of Understanding using legal templates. He instructs viewers to click on a link in the video description, navigate to business forms, and utilize the search engine to find the Memorandum of Understanding template. The process involves identifying the first and second parties as either businesses or individuals and inputting their respective names, addresses, and contact details. Viewers are then prompted to specify the effective date of the memorandum, the project name, and its main objectives. Finally, they must outline the expertise and experience each party will contribute to the project.