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In this video tutorial, Matthew demonstrates how to create a daycare contract using Legal Templates. Viewers are instructed to scroll down for a link to legaltemplates.net. Once there, they should navigate to "business forms" and click on "view all business forms." Using the search function, they can find the daycare contract by typing "daycare" and selecting "contract." Matthew shows how to preview the PDF to understand its layout before creating the document. He explains that the transaction type is for services, guiding viewers through entering provider information, including address and city, as steps to complete the contract.