ACCA AS Corporate and Business Law (LW)

Question 1

Which of the following is NOT a requirement for a valid simple contract under English law?

Accepted Answer

A written document signed by both parties

Answer

Offer and acceptance

Answer

Consideration

Answer

Intention to create legal relations

Question 2

Under the Companies Act 2006, what is the minimum number of directors required for a public limited company?

Accepted Answer

Two

Answer

One

Answer

Three

Answer

Four

Question 3

In the context of agency law, which of the following best describes 'apparent authority'?

Accepted Answer

Authority that arises from the conduct of the principal leading third parties to believe the agent has authority

Answer

Authority explicitly granted by the principal in a written agreement

Answer

Authority granted by a court order

Answer

Authority that an agent assumes without any basis

Question 4

Which remedy is available to a party for breach of a condition in a contract?

Accepted Answer

Either repudiation of the contract or damages, or both

Answer

Damages only

Answer

Repudiation of the contract only

Answer

Specific performance only

Question 5

Under the Insolvency Act 1986, which of the following is the correct order of priority for distribution of assets in a compulsory liquidation?

Accepted Answer

Secured creditors (fixed charge), liquidator's costs, preferential creditors, unsecured creditors

Answer

Unsecured creditors, preferential creditors, secured creditors, liquidator's costs

Answer

Liquidator's costs, secured creditors, unsecured creditors, preferential creditors

Answer

Preferential creditors, liquidator's costs, secured creditors, unsecured creditors

Question 6

A fraudulent misrepresentation in contract law requires which of the following elements?

Accepted Answer

A false statement made knowingly, without belief in its truth, or recklessly

Answer

A false statement made carelessly without checking its truth

Answer

An honest but incorrect statement of opinion

Answer

A statement that later becomes untrue due to changed circumstances