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In this tutorial, Edgar from TaxDome explains how to create contract templates. First, navigate to the settings page, then to the templates tab, followed by the contracts sub-tab. Here, you can either create a new contract template or copy existing ones from the template library. If you have pre-existing templates, you can edit them by clicking their names. To start from scratch, click the "create template" button. You'll first enter a name for the template, then choose between two formatting options: "what you see is what you get" (WYSIWYG), which provides simple text formatting tools, or HTML, which allows for more detailed formatting through code.