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In this lesson, the tutorial demonstrates how to create a contract using previously established contract templates in Oracle Fusion Cloud. It begins by confirming the application version, which is 21b. To create a new contract, users must first access the task menu, navigate to "Manage Contract Templates," and select the desired template for the new contract. The tutorial highlights the process of pulling the selected template for contract creation, referencing that three templates have already been created from which users can choose. Finally, users can proceed to take actions based on the selected template.