Marketing
You may have learned in a marketing class about the six components of the communication process, usually including the following:

1. Source: The company or business that produces the information conveyed to the buyer.
2. Message: The information sent by the source.
3. Channel of communication: The means by which the message is conveyed, such as a letter or salesperson.
4. Receivers: The consumers or prospective purchasers who read or see the message.
5. Encoding: The process by which a source transforms its ideas into a set of symbols.
6. Decoding: The process whereby the receiver evaluates the symbols and transforms them back into an idea.

This communication process is also relevant to the contractual agreement between an offeror and an offeree. Franklin wants to sell a house, and his communication to Shanna, a prospective buyer, is crucial. As the offeror Franklin should be very clear about the terms and conditions of the intended sale, so the encoding and decoding processes are unambiguous to Shanna, the offeree. By avoiding ambiguity in the terms of an offer, the offeror and offeree are less likely to find themselves in court for disputes about the terms of a contract or even about whether a contract exists.

Source: R. Kerin, S. Hartley, E. Berkowitz, and W. Rudelius, Marketing (New York: McGraw-Hill/Irwin, 2006), pp. 470–472.