BUL3310 – Exam 2 – Florida State University – 2026 | Contract Law & Commercial Transactions Study Guide Graded A+

BUL3310 – Exam 2 – Florida State University – 2026 | Contract Law & Commercial Transactions Study Guide Graded A+ Freedom of contract A perspective where courts do not interfere with the contracting process, do not assess the wisdom of the deal, and enforce valid contracts unless there is evidence of fraud, mistake, oppression, or lack of legal purpose. Restatement (Second) of Contracts A model law that many courts have adopted to govern contracts involving services or real estate. Uniform Commercial Code A model code for the sale of goods. Good Faith Dealing Honesty in fact and the observance of reasonable commercial standards of fair dealing. Bilateral Contract Mutual promises made by both parties. Unilateral Contract Promise made by one party. Explicit Contract Terms explicitly defined (oral or written). Implied Contract Terms implied by behavior or social custom. UCC requirements Requires written contracts for sale of goods over $500. Mutual Assent Offer + Acceptance = Meeting of the Minds. Offer Promise to do something. Termination of an Offer - By Action Includes revocation, rejection, counteroffer, and irrevocable offers. Irrevocable Offers Includes option contract, partially performed offers, and firm offers by a merchant. Acceptance Offeree's expression of agreement to terms, which can be written, oral, or by conduct. Mailbox Rule Acceptance is effective upon dispatch if sent via a reasonable means. Mutual Mistake Both parties hold an erroneous belief about a basic assumption. Unilateral Mistake Only one party is mistaken about a basic assumption. Agreements That Lack Consideration Includes preexisting duty, illusory promise, past consideration, and promissory estoppel. Valid Contract Has all required elements (mutual assent + consideration). Void Contract Lacks one or more required elements or violates the law. Voidable Contract One or more parties have the legal right to cancel under certain circumstances. Unenforceable Contract All elements are present, but a legal defense prevents enforcement. Value chain activities The different business functions that generate value in most businesses. Good faith Hon