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In this video tutorial, Matthew explains how to create a Memorandum of Understanding using legal templates. To start, viewers must click on the link below the video and navigate to the business forms section. Legal templates offer a variety of forms, so users need to search for "memorandum of understanding" to create the document. The form requires information about the first and second parties, project name, objectives, cooperation details, expertise, and experiences. It is important to provide accurate information and details when filling out the form.