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whats up my fellow contractors im gonna show you guys today the difference between an invoice and a legal contract in the state of california unfortunately theres a lot of contractors that do not know the difference between the two so ill show you guys right now so this is an example of an invoice of course it has the contractors and the clients information were gonna go ahead and describe the work that were doing for the payment that were receiving but realistically this this doesnt really offer any type of protection this is just a receipt of payment proof of payment most contractors get confused and believe this is some sort of contract but realistically again it is just a receipt heres an example of a contract this is known as a home improvement contract so if youre working on a residential property that already exists this is the contract that youre using this can be used for landscapers electricians plumbers roofers if the residential property already exists youre us