A dispute has emerged between Stanton Software, a large software development company, and Emily Johnson, a freelance software developer. Stanton Software extended a written offer to Emily, proposing a contract for her to develop a proprietary piece of software within six months. Emily, after reviewing the terms, replied with a modified offer, suggesting a nine$-$month timeline and an increased fee due to the complexity of the work involved. Stanton Software responded, insisting that their original terms were final and could not be altered.

The situation has escalated to a legal dispute, as Emily argues that her reply was a counteroffer and thus a rejection of the original offer, while Stanton maintains that there was a misunderstanding and still considers their original offer valid.Discuss the legal capacity of both parties to enter into a contract, considering any relevant details that might affect their ability to contract legally.