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In this video, Matthew explains how to create an interior design contract online using legal templates. He provides a link to the templates in the video description and guides viewers to navigate to "Business Forms" for options. Using the search feature, he locates the interior design contract template and previews the PDF format. Matthew specifies that the transaction involves services, particularly in design. He discusses filling out the contract, including details about the service provider's information and the customer's details. The tutorial aims to help users effectively draft an interior design service contract.