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In this tutorial on freelancing, the presenter discusses the differences between contracts and proposals. Contracts are legal documents that outline the terms of an agreement, detailing obligations and legal responsibilities. In contrast, proposals focus on selling the idea of a project, including details like cost and project scope. Proposals aim to persuade and secure the deal, but they can also include terms similar to those found in contracts. Therefore, while proposals often encapsulate contract elements, their primary purpose is to market the agreement. The speaker emphasizes that the information provided is for freelancers and not legal advice.