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This video tutorial explains the difference between an invoice and a legal contract for contractors in California. Many contractors confuse invoices with contracts. An invoice serves as a receipt and proof of payment, containing the contractor's and client's information and details of the work performed, but it offers no legal protection. In contrast, a legal contract, specifically a home improvement contract, is necessary when working on existing residential properties. This type of contract is applicable for various trades, including landscaping, electrical work, plumbing, and roofing. The tutorial emphasizes the importance of using the correct document to ensure legal protection.
