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This video discusses the common-law mirror image rule for contracts. It states that acceptance must be on the same terms as the offer for a contract to be formed. If the terms are not identical, it is considered a counteroffer. For example, if a farmer offers to sell red apples delivered by truck, but the businessman accepts with delivery by train, the businessman is making a counteroffer. The farmer can choose to reject or accept the counteroffer, which would create an obligation to deliver the apples by train.