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In this video, Matthew demonstrates how to create a daycare contract using Legal Templates. He guides viewers to scroll down for a link to legaltemplates.net, where they can access various business forms. After clicking on "view all business forms," he suggests using the search engine to find the daycare contract by typing "daycare." Viewers can preview the PDF of the contract to understand its layout before proceeding to create the document. The tutorial emphasizes selecting "services" for the nature of the transaction and entering the provider's address and other relevant information.