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In the tutorial, the process of creating a contract using a contract template is explained. The instructor mentions that in the previous lesson, various scenarios for creating a new contract template were covered, but creating a new contract from these templates wasn't demonstrated. The tutorial then proceeds to show how to create a new contract using the existing contract templates in Oracle Fusion Cloud. The instructor demonstrates how to pull the contract templates, select the desired template, and then proceed to create a new contract form. The tutorial emphasizes the importance of first pulling the contract templates before starting the contract creation process. Oracle Fusion Cloud application 21b is mentioned as the latest version being used in the demonstration.