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In this tutorial, the speaker discusses the difference between contracts and proposals in freelancing. They clarify that contracts are legal documents focused on the terms of a deal, detailing obligations and legal aspects. In contrast, proposals are sales documents aimed at persuading a client to engage in a deal, highlighting the project's scope, costs, and payment terms. Proposals may also outline key terms of the deal and can sometimes serve the dual purpose of acting as both a proposal and a contract. The speaker emphasizes that this guidance is based on their experience as a freelancer, not legal expertise.