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In this video tutorial, Matthew explains how to create a Memorandum of Understanding (MOU) using legal templates. He advises viewers to click on the provided link to access business forms and then search for "memorandum of understanding." The process involves identifying the first party as either a business or an individual and entering their details, including name, address, city, state, and zip code. The same information is required for the second party. Viewers must also specify when the MOU will become effective and provide details about the project name and objectives. Lastly, the tutorial covers outlining the expertise and experiences that both parties will contribute to the collaboration.