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This video discusses the common-law mirror image rule for contracts. According to this rule, the acceptance must be on the same terms as the offer to form a contract. If the terms are not identical, it is considered a counteroffer. For example, if a farmer offers to sell red apples with delivery by truck, but the businessman accepts with delivery by train, it is a counteroffer. The original offeror can choose to reject or accept the counteroffer to form a binding contract.