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In this video tutorial, the presenter discusses the differences between contracts and proposals in freelancing. Contracts are legal documents detailing the terms of the deal, specifying obligations and legal conditions. Proposals, on the other hand, serve as sales documents that focus on persuading the client to agree to the deal, outlining the project scope, costs, and payment terms. While proposals can often contain contractual terms, their primary goal is to secure the agreement. The presenter emphasizes that this information is intended as freelancer advice, not legal counsel.