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In this tutorial on starting freelancing, the speaker discusses the concepts of contracts and proposals. They clarify that contracts are legal documents detailing the terms of a deal, including responsibilities and legal obligations. Conversely, proposals serve as sales documents focused on persuading a client to agree to the deal, outlining the project details and costs. While proposals often include payment terms and can double as contracts, they primarily aim to secure the agreement. The speaker emphasizes that their advice is based on freelance experience, not legal expertise.