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This video examines the issue of contract formation in the context of form contracts, commonly referred to as the Battle of the Forms in commercial transactions. Companies often use standard forms for buying and selling goods, with the buyer sending a purchase order containing specific terms such as quantity, price, and subject matter. The back of the purchase order typically includes pre-printed boilerplate terms covering shipping, dispute resolution, warranties, and cancellations. If the seller agrees to the terms in the purchase order, a contract is formed based on those terms.