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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 nｏｒa contract

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

A、They can be made either orally ｏｒin writing

B、 They must be made in writing

C、They must be evidenced in writing

7 Where directors make a false statement of solvency priｏｒto a members’ voluntary liquidation, which of the following 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 fｏｒany injury suffered

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

C 、The level of any potential payment fｏｒany 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 fｏｒassessing 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 directｏｒin 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

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