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In this video tutorial, Matthew explains how to create an interior design contract online using legal templates. He provides a link to access these templates and navigates to the "business forms" section. By using the search function for "interior design," he locates the appropriate contract template. He previews the PDF version of the contract before filling it out. Matthew emphasizes that the transaction involves the sale of services, specifically in interior design. He notes that the provider's information should be included, as well as details about the customer and the specific services being offered.