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In this video tutorial, Matthew demonstrates how to create a memorandum of understanding using legal templates. Viewers are instructed to click on the provided link, navigate to business forms, and search for "memorandum of understanding" to begin creating the document. Details such as the parties involved, project name and objective, cooperation, and termination terms are essential in drafting the memorandum. By following the step-by-step instructions, viewers can easily customize the document to suit their needs.