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Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.

1 Which of the following involves an offer which may only be accepted by performing an action?

A、A collateral contract

B、 A unilateral contract

C、A bilateral contract

2 An agency relationship which is made retrospectively is referred to by which of the following terms?

A、 Agency by estoppel

B、 Agency by ratification

C、Agency by necessity

3 In contract law, the ‘market price rule’ arises in relation to which of the following?

A、 Offer

B 、Consideration

C、 Remoteness

D、 Mitigation

4 In relation to a debenture, which of the following is NOT true?

A 、It may be issued at a discount

B、 Interest on it may be paid from capital

C、 It is paid after preference shares

D、It is freely transferable

5 Tan writes to Yun stating that he will sell his car to him for ￡10,000. At the same time, Yun writes to Tan stating that he will buy his car for ￡10,000. Which of the following statements applies to this situation?

A、There is a binding agreement due to the postal rule

B、There is a collateral contract

C、 There is neither an agreement nor a contract

6 Which of the following statements about contracts of employment is true?

A、They can be made either orally or in writing

B、 They must be made in writing

C、They must be evidenced in writing

7 Where directors make a false statement of solvency prior to a members’ voluntary liquidation, which of thefollowing have they committed under the relevant legislation?

A、 A breach of criminal law with criminal penalties

B、A breach of civil law with criminal penalties

C、A breach of civil law with civil liability

D、 A breach of both civil and criminal law with liabilities under both

8 Which of the following is the consequence when a patient signs a medical consent form before an operation?

A、 The patient gives up any right of action for any injury suffered

B 、Any action for any injury suffered during the operation is limited to negligence

C 、The level of any potential payment for any injury suffered is reduced

9 Where a contract states the sum to be paid in the event of a breach of contract, the stated sum is known as which of the following?

A、Unliquidated damages

B、 Liquidated damages

C、Specific damages

D、 Nominal damages

10 Which of the following applies to the concept of enlightened shareholder value?

A、 It is the price shares can be expected to raise if they were to be sold

B、It is the yardstick for assessing the performance of directors’ duties

C、 It is the standard of behaviour expected of shareholders in general meetings

11 Which of the following involves a summary dismissal in relation to a contract of employment?

A、Both parties agree to end the contract immediately without notice

B、The employee breaks the contract without notice

C、The employer terminates the contract without notice

12 What qualification is the company secretary of a private limited company required to have?

A、 An appropriate legal qualification

B、 An appropriate professional qualification such as ACCA

C、 No qualification

13 Statutory redundancy payment is calculated on the basis of which of the following?

A、Length of service and pay only

B、 Age and length of service only

C、Age, length of service and pay

14 In relation to wrongful trading, the standard against which the conduct of directors will be assessed is which of the following?

A、Purely subjective, depending on the actual skill of the director

B、Purely objective, depending on what is expected of a director in that position

C、A mixture of subjective and objective but only to increase potential liability

D、A mixture of subjective and objective but only to reduce potential liability

15 Which of the following statements as regards an acceptance of an offer ‘subject to contract’ is true?

A、It binds the offeror

B、It binds neither party

C、It binds both parties

16 Su had just passed her driving test when she negligently drove into a pedestrian. What standard of care will Su be judged by?

A、 The objective standard of a newly qualified driver, lack of experience will be taken into account

B、The objective standard of a competent driver, lack of experience will not be taken into account

C、The subjective standard of actual ability

17 Which of the following are ordinary partnerships UNABLE to create in relation to their property?

A、Mortgages

B、Fixed charges

C、 Floating charges

18 Which of the following courts deal with civil law matters ONLY?

A、The Crown Court

B、 The magistrates’ court

C、 The county court

19 Jo promises to pay a reward for the return of her lost phone. Mia finds the phone and returns it to Jo. Which of the following types of consideration has Mia provided?

A、 Executed consideration

B、Executory consideration

C、 Past consideration

20 Which of the following requires court approval before the appointment of an administrator?

A、 Creditors

B、 Holders of floating charges

C、 The directors of the company

D、 The company itself

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