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In this video tutorial, Edgar from Tax Dome explains how to create contract templates. To begin, navigate to the settings page, select the templates tab, and access the contracts sub-tab. You can create a new template or copy from existing ones in the template library. If you have existing templates, you can edit them by clicking their names. To create a new template, click the "create template" button, and first enter a name for the template. You'll have the option to choose between "what you see is what you get" (WYSIWYG) mode for simple text formatting or HTML mode for more advanced control. HTML allows you to paste custom code for precise formatting.