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This video discusses the common-law mirror image rule for contracts, which states that acceptance must be on the same terms as the offer to form a contract. If the terms of acceptance differ from the offer, it is considered a counteroffer. For example, if a farmer offers to sell apples for delivery by truck, but the businessman accepts with delivery by train, it constitutes a counteroffer. The original offeror can choose to reject the counteroffer or accept it to form a contract.