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In this tutorial on freelancing, the speaker discusses the distinction between contracts and proposals. They clarify that contracts are legal documents that focus on the terms of an agreement, detailing obligations and legal conditions. In contrast, proposals are sales documents aimed at persuading a client to engage in a deal, often including pricing and project details. While proposals outline deal terms, they can sometimes serve as contracts themselves. The speaker emphasizes that this information is meant as freelancer advice and not legal counsel, reminding viewers of the importance of understanding both documents in the freelancing process.