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In this video tutorial, the presenter discusses the differences between contracts and proposals in freelancing. He emphasizes that while contracts are legal documents focusing on the specific terms of the deal, proposals serve a more sales-oriented purpose, persuading clients to engage in the agreement. Proposals outline the cost and payment terms, and often resemble contracts since they can include similar details about the deal. He also advises viewers to treat this information as general freelance advice rather than legal counsel. Overall, understanding both documents is key for freelancers navigating agreements.