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In this tutorial, the speaker explains the distinction between an invoice and a legal contract for contractors in California. Many contractors misunderstand these two documents. An invoice is presented as a receipt of payment, containing the contractor's and client's information and a description of the work, but it offers no legal protection. In contrast, a legal contract, specifically a home improvement contract, is necessary for work on existing residential properties. This type of contract is applicable to various trades, including landscaping, electrical work, plumbing, and roofing, and is essential for safeguarding both parties involved in the project.
