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In this tutorial, the speaker discusses the differences between contracts and proposals in freelancing. They clarify that contracts are legal documents outlining the terms of the deal, including responsibilities and obligations. In contrast, proposals serve as sales documents intended to persuade clients, detailing the project's scope, cost, and benefits. Proposals often include terms similar to those in contracts, making them functionally similar; however, their primary purpose is to secure the deal. The speaker emphasizes that this advice is meant for freelancers and should not be considered legal counsel.