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In this tutorial, Matthew explains how to create a Memorandum of Understanding (MOU) using legal templates. First, users should click on the link provided in the video description, navigate to "business forms," and search for "Memorandum of Understanding." To create the document, users must identify the first party as either a business or an individual, then input their name, address, city, state, and zip code. The same information is required for the second party. Next, the video emphasizes specifying the effective date, project name, and objectives, alongside detailing the cooperation and expertise of each party involved in the MOU.