Under the U.S. Commercial Code, an agreement is a legal transaction that requires all of the following components with one exception. Which one is not required?

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The parties do not necessarily have to reside in the same state for an agreement to be legally binding under the U.S. Commercial Code. All the other components listed (subject matter legality and validity, mutual consideration, capable parties, and agreement by offer and acceptance) are required for an agreement to be legally binding.