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:	Breach of contract and remedies
Chapter Number:	06 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.

Keywords

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F4 (ENG) - Chapter 06 - 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: 06 - Breach of contract and remedies
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Which of the following statements is NOT a lawful excuse for failing to perform contractual obligations?

Actual performance is impossible

Performing the contract will cause the party concerned financial hardship

Both parties agreed to non-performance

2 / 15

At which point does anticipatory breach of contract occur?

At the time performance is due

Before the time performance is due

After the time performance is due

3 / 15

Which of the following correctly describes the type of repudiatory breach known as renunciation?

One party prevents themselves from performing their obligations

One party is prevented from performing their obligations by external circumstances

One party states that they have no intention to perform their obligations

4 / 15

In relation to the award of damages in contract law, which of the following describes damages paid to protect the claimant's reliance interest?

What is needed to recover the price of goods or services provided under the contract

What is needed to put the claimant into the position they would have been in if the contract had been performed

What is needed to put the claimant into the position they would have been in if they had not relied on the contract

5 / 15

In relation to contract law, which of the following describes liquidated damages?

A sum equal to the amount of work done plus an element of profit that is payable in the event of a breach of contract

A genuine pre-estimate of losses payable in the event of breach of contract

A specific sum payable in the event of a breach of contract to punish a party for their breach

6 / 15

In which of the following circumstances would an award of specific performance be made?

In breach of contract in a contract involving the sale of property

In breach of contract in an employment contract

In breach of contract in a contract for personal services

7 / 15

Which of the following is an example of an equitable remedy for breach of contract?

Injunction

Quantum meruit

Action for the price

8 / 15

Which of the following is true concerning the rights of an innocent party where repudiatory breach of contract has occurred?

The innocent party can claim damages for any losses but not treat the contract as discharged

The innocent party may affirm the contract and continue with their obligations

The innocent party cannot refuse to pay for partial or defective performance already received

If the innocent party chooses to terminate the contract they are not required to notify the other party

9 / 15

Which of the following is NOT a lawful excuse for failing to perform contractual obligations?

Performance is rejected by the other party

Performance is rendered more expensive than agreed due to external circumstances

Performance is made impossible by the other party

10 / 15

Which TWO of the following are tests that should be met when determining whether damages are too remote to be claimed?

Losses must be connected in some way to the breach of contract

Losses related to exceptional circumstances are too remote to be claimed

Losses must arise naturally from the breach of contract

Losses arising outside the normal course of events will be compensated if the circumstances are within the defendant's knowledge when they formed to contract

11 / 15

In relation to the law of contract, which of the following statements in relation to damages is correct?

Damages in the form of a penalty clause are valid and enforceable

Damages are not payable in relation to mental distress

Damages to rectify a defect are still payable even if they are wholly disproportionate to the size of the breach

An innocent party is required to take reasonable steps to mitigate their losses

12 / 15

Which of the following statements in relation to liquidated damages is correct?

Liquidated damage clauses are void and unenforceable in contract law

The purpose of liquidated damage clauses is to deter potential breaches of contract

Liquidated damage clauses must be highlighted in the contract

13 / 15

Which of the following is true regarding injunctions?

Injunctions require a defendant to observe a negative restriction of a contract

A court has no discretion as to whether or not to award an injunction

Injunctions are a common law remedy

14 / 15

Rescission is an equitable remedy, and where available, makes the contract voidable. There are a number of conditions attached to the award of rescission.

Which of the following is a condition that must be met for an award of rescission to be made?

Rescission must take place after the contract is affirmed

Innocent third parties must not have acquired rights under the subject matter of the contract

The right to rescind the contract must be exercised within 30 days of it being awarded

The innocent party, only, must be able to be restored to their pre-contract position

15 / 15

For an order for specific performance to be made, which TWO of the following criteria must be met?

Damages must be inadequate compensation

The parties must both agree to the award

Consideration must have passed between the parties

The contract must require performance over a long period of time