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In this video tutorial, Matthew explains how to create a Memorandum of Understanding using legal templates. He begins by instructing viewers to click on a link provided in the video description to access business forms. Once there, users should search for "Memorandum of Understanding" to create a document. The process involves identifying the first party as either a business or an individual, then entering their name, address, city, state, and zip code. The same information is required for the second party. Viewers are also prompted to specify the effective date for the memorandum, state the project name and objectives, and outline the expertise and experiences relevant to the cooperation between the parties.