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In this tutorial on freelancing, the speaker explains the difference between contracts and proposals. Contracts are legal documents that detail the terms of the deal, outlining what each party owes and the associated legal obligations. In contrast, proposals focus on selling the service, explaining the benefits of the deal, costs, and why it should be accepted. Proposals can also include terms similar to contracts, such as payment details, meaning they often serve a dual purpose. The speaker emphasizes that this information should be considered freelancer advice rather than legal advice.