1. Which of the following is TRUE ?

A. Parties are not generally free to bargain as they wish.

B. Cour ts typically consider the adequacy of consideration.

C. Rescission is the dissolutio n of a contract that returns the parties to the positions they held before the contract.

D. Two parties can mutually agree to rescind a contract unless it is executory.

2. Which of the following is FALSE?

A. For consideration to have “legally sufficient value,” it must con sist of goods or money.

B. A promise by one party to pay another for refraining from an act is enforce able.

C. A transaction that lacks a bargained - for exchange lacks an element of consideration.

D. Risks ordinarily assumed in business do not constitute consideration for the modification of a contract.