These are ACCA F4 English (CL/LW) Corporate and Business Law MCQs for Part-B of the Syllabus “The law of obligations”.

These multiple-choice questions (MCQs) are designed to help ACCA F4 English students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have studied the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F4 English (CL/LW) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Association of Chartered Certified Accountants
Fundamental Level:	Applied Skills
Subject:	Corporate and Business Law
Paper:	F4 English – CL/LW
Chapter:	Formation of contract
Chapter Number:	03 and 04 of the Practice and Exam Kit
Syllabus Area:	B – “The law of obligations”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part B of the Syllabus; “The law of obligations” of ACCA F4 English (CL/LW) Corporate and Business Law Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F4 English CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F4 (ENG) - Chapter 03 and 04 - Part B - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (ENGLISH) - Corporate And Business Law
Syllabus Area: B - The law of obligations
Chapter in Kit: 03 and 04 - Formation of contract
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 30

Which of the following contracts must be in the form of a deed?

A transfer of shares

A conveyance (a transfer of a legal estate in land)

A consumer credit contract

2 / 30

In relation to contract law, which of the following describes an offer?

A verbal promise to be bound on specific terms

Displaying goods for sale in a supermarket

A statement of possible terms

3 / 30

In a sale by auction that is stated to be 'without reserve', at which point is an offer made?

When a bid is made

When the auctioneer presents the goods being sold

When the auctioneer's hammer falls

4 / 30

In relation to contract law, how long will an offer remain open if no time period is set for its expiry?

One day

For a reasonable time

One month

5 / 30

Which of the following will terminate an offer?

Posting a letter of revocation

A request for information

Death of the offeree

6 / 30

Which of the following is NOT a valid method of acceptance?

Silence of the offeree

The offeree's express words

The offeree's conduct

7 / 30

Which of the following statements regarding the postal rule is correct?

Acceptance is effective once the letter of acceptance is delivered

Acceptance is effective once the letter of acceptance is posted

Acceptance is effective once the letter of acceptance is written

8 / 30

Which of the following is an example of a standard form contract?

A verbal agreement between two private individuals

A contract of employment between a private individual and a small local shop

A contract for the supply of electricity between a utility company and a private individual

A contract for the sale of a house between two private individuals

9 / 30

Which of the following statements concerning the law and contracts is correct?

The law does not interfere in the formation of contracts

The law seeks to maintain the bargaining power of parties in a contract

The law seeks to ensure equal bargaining power between parties

The law will only interfere in contracts where one party abuses a stronger bargaining position

10 / 30

Which TWO of the following are examples of valid offers?

A person verbally stating to another person that they would like to sell their computer to them for £500 today

A newspaper advert that states a shop is selling shoes for £20

A person handing their shopping to a supermarket checkout operator

A business that circulates its price list to customers

11 / 30

Which of the following is an example of a valid offer?

An invitation for potential suppliers to tender for the provision of services

A display of goods for sale

A newspaper advert that includes a specific statement, made to the world at large, offering a reward for the return of a particular item

An Internet shop that advertises products for sale

12 / 30

Which of the following statements regarding counter-offers is correct?

Counter-offers may be accepted by the original offeror

A statement that enquires whether alternative terms would be acceptable is a counter-offer

Counter-offers do not terminate the original offer

A counter-offer is made by the original offeror to the original offeree

13 / 30

In which of the following situations will an offer be terminated?

When a third party, who is sufficiently reliable, verbally notifies the offeree of the offeror's revocation

When a letter of revocation is posted

When an offeree enquires whether the offeror will accept payment by credit card rather than cash

When an offeror dies, the offeree is unaware of the death and the contract is not of a personal nature

14 / 30

Which of the following would be regarded as valid, binding acceptance?

A tender to perform one task

Acceptance 'subject to contract'

Posting a letter of acceptance

A counter-offer

15 / 30

Which TWO of the following statements regarding acceptance of an offer are correct?

If no method of communicating acceptance is stated in the offer, then acceptance must be made by post

If two identical offers between two parties cross in the post, then one will be regarded as acceptance of the other

Under the postal rule, a letter of acceptance that has been posted does not have to be received by the offeror to be valid acceptance

Acceptance does not need to be communicated in a unilateral contract

16 / 30

Which of the following is executed consideration?

Providing goods in return for payment at the same time

A promise of payment in return for the provision of goods at a later date

A promise to pay for work already carried out

17 / 30

Which of the following describes how courts deal with the adequacy of consideration?

Courts will not interfere in a contract to rectify a bad bargain

Courts will seek to ensure that consideration from each party is of equal value

Courts will seek to ensure no party makes excess profit

18 / 30

Which of the following statements regarding the adequacy and sufficiency of consideration is correct?

Consideration does not need to have a value to be sufficient

Consideration does not need to be sufficient but must be adequate

Consideration is sufficient if it has some economic value

19 / 30

Which of the following is true regarding privity of contract?

Privity of contract only relates to rights under a contract, not obligations

Third parties to a contract generally have enforceable rights under it

Only parties to a contract generally have enforceable rights under it

20 / 30

Which of the following is NOT an exception to the rule of privity of contract?

A third party to a contract can enforce rights under it if it is equitable for them to do so

A third party to a contract can sue for losses they incur under a contract if the losses are foreseeable

A third party to a contract can bring an action under it if an implied trust has been created

21 / 30

Which of the following statements regarding intention to create legal relations is correct?

A contract will be legally binding if both parties intended it to be so

Commercial arrangements are generally not intended to be legally binding

Social arrangements are generally intended to be legally binding

22 / 30

Which of the following indicates that the parties intend to be legally bound?

A letter of comfort

An agreement 'binding in honour only'

An agreement between a husband and wife to transfer property between them

23 / 30

Which of the following is a correct rule for valid consideration?

Consideration must be adequate

Consideration must pass from the promisee

Executory consideration is generally not valid

Past consideration is generally valid consideration

24 / 30

Which of the following statements is true of consideration?

Consideration can be in the form of any act, even if that act is impossible to perform

Past consideration is sufficient to create liability on a bill of exchange

Suffering some loss or detriment is not valid consideration

25 / 30

Where a party accepts part payment for a debt, they may at a later date request payment of the amount outstanding unless the other party provided extra consideration when making the part payment.

Which TWO of the following are valid extra consideration for part payment of a debt?

Payment by a third party rather than the debtor

A guarantee by the debtor to make the payment on the date agreed in the contract

Payment in the form of goods rather than cash

An intention by the debtor to be legally bound by the part payment

26 / 30

Which of the following statements regarding consideration is correct?

Performance of an extra service in addition to an existing contractual duty is not sufficient consideration for the promise of additional reward

Performance of an existing contractual duty is sufficient consideration for the promise of additional reward

Performance of an existing contractual duty to a third party is sufficient consideration for the promise of additional reward

Performance of an existing legal obligation is valid consideration for the promise of additional reward

27 / 30

Which of the following statements concerning privity of contract is correct?

Privity of contract is not subject to regulation by statute

Privity of contract is only enforceable on commercial contracts

There are no exceptions to the rule of privity of contract

Privity of contract means only parties to a contract may sue on it

28 / 30

The Contracts (Rights of Third Parties) Act 1999 sets out the circumstances where a third party has a right to enforce rights they may have under a contract.

Which of the following statements concerning the Contracts (Rights of Third Parties) Act 1999 is correct?

The third party need not be in existence when the contract was formed

The third party need not be expressly identified in the contract

The Act confers rights to third parties under employment contracts

The Act confers rights to third parties under a company's constitution

29 / 30

Which of the following is true regarding presumptions of intention to create legal relations?

Parties in social, domestic and family agreements never intend to be legally bound

Parties in commercial agreements never intend to be legally bound

The presumption in all agreements is that the parties intend to be legally bound

Any presumptions in regards to the intention of parties to be legally bound may be refuted and the burden of proof is on the party seeking to escape liability

30 / 30

Which TWO of the following social, domestic and family contracts would be presumed by the courts as intended to be legally binding?

An agreement between a husband and wife who have separated for one to rent the family home from the other

An agreement by a son to pay his mother housekeeping money while he stays at home

An agreement where a father offers to pay his daughter a monthly allowance if she continues her education

An agreement between friends to enter a newspaper competition together and share any prizes between them