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Free Questions › ACCA › Corporate and Business Law
Free ACCA Corporate and Business Law Practice Questions & Answers
400 exam-style Corporate and Business Law questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 61
The 'postal rule' in contract law states that acceptance is complete when:
Select an option first.
Correct answer: C — The letter is posted, even if it is lost in the post
Explanation: Postal rule (Adams v Lindsell): acceptance is complete when the letter is posted.
Question 62
A 'counter-offer' in contract law:
Select an option first.
Correct answer: B — Terminates the original offer and becomes a new offer from the counterparty
Explanation: A counter-offer (Hyde v Wrench) simultaneously rejects and replaces the original offer.
Question 63
For revocation of an offer to be effective, it must be:
Select an option first.
Correct answer: C — Communicated to the offeree before they accept
Explanation: Revocation is only effective once communicated to the offeree before acceptance.
Question 64
Which of the following correctly describes the law's approach to 'social agreements'?
Select an option first.
Correct answer: B — There is a presumption that parties do NOT intend legal relations, so they are not binding contracts
Explanation: For domestic/social arrangements, courts presume no intention to create legal relations (Balfour v Balfour).
Question 65
Which statement about commercial agreements is correct?
Select an option first.
Correct answer: A — There is a rebuttable presumption that parties intend to create legal relations
Explanation: In commercial contexts, parties are presumed to intend legal relations (Edwards v Skyways).
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Question 66
Under the Consumer Rights Act 2015, a term in a B2C contract attempting to exclude liability for death or personal injury caused by negligence is:
Select an option first.
Correct answer: B — Automatically void and of no legal effect
Explanation: CRA 2015: excluding liability for death/personal injury from negligence is always unfair and void.
Question 67
The 'business efficacy test' for implying a term in fact requires that:
Select an option first.
Correct answer: B — Without the term, the contract would lack commercial or practical effectiveness
Explanation: Business efficacy test (The Moorcock): is the term necessary to give the contract practical effect?
Question 68
Which of the following correctly describes 'accord and satisfaction'?
Select an option first.
Correct answer: B — Both parties agree to release each other from the original contract, each providing fresh consideration
Explanation: Accord and satisfaction: agreement to end the original contract with new consideration from each party.
Question 69
Which is the correct definition of 'novation' in contract law?
Select an option first.
Correct answer: B — Substituting a new contract (or party) for an old one, with all parties' consent
Explanation: Novation replaces the old contract/party with a new one with all parties' consent.
Question 70
An 'exclusion clause' will only be incorporated into a contract if:
Select an option first.
Correct answer: B — Reasonable notice of it was given before or at the time of contracting
Explanation: Exclusion clauses must be brought to the other party's attention before the contract is formed.
Question 71
Which of the following correctly states the rule about promissory estoppel?
Select an option first.
Correct answer: B — Where a creditor clearly promises not to enforce their full legal rights and the debtor relies on this, the creditor may be estopped from immediately going back on that promise
Explanation: Promissory estoppel (High Trees): suspends (but generally does not extinguish) rights.
Question 72
In the law of torts, which statement correctly distinguishes 'trespass to person' from negligence?
Select an option first.
Correct answer: A — Trespass is actionable without proof of damage; negligence requires proof of damage
Explanation: Trespass is actionable per se; negligence requires proof of actual damage.
Question 73
The 'mischief rule' of statutory interpretation directs courts to:
Select an option first.
Correct answer: B — Identify the mischief Parliament intended to remedy and interpret the statute to suppress that mischief
Explanation: The mischief rule (Heydon's Case) identifies and suppresses the mischief Parliament aimed to remedy.
Question 74
The 'duty to mitigate' in breach of contract cases requires the innocent party to:
Select an option first.
Correct answer: B — Take reasonable steps to reduce their loss following a breach
Explanation: The innocent party must take reasonable steps to minimise their losses.
Question 75
Which of the following is an 'automatically unfair' reason for redundancy selection?
Select an option first.
Correct answer: B — Selection based on the employee having made a protected disclosure (whistleblowing)
Explanation: Selecting for redundancy because of whistleblowing is automatically unfair.
Question 76
The Equality Act 2010 provides that 'direct discrimination' occurs when:
Select an option first.
Correct answer: B — A person is treated less favourably than a comparator because of a protected characteristic
Explanation: Direct discrimination: less favourable treatment because of a protected characteristic vs a comparator.
Question 77
Which of the following correctly describes 'indirect discrimination' under the Equality Act 2010?
Select an option first.
Correct answer: B — Applying a neutral provision, criterion or practice that puts a group sharing a protected characteristic at a particular disadvantage
Explanation: Indirect discrimination: neutral rule that disproportionately disadvantages a protected group.
Question 78
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees when:
Select an option first.
Correct answer: B — Their employer's business (or part of it) transfers to a new employer, and employees' existing terms transfer automatically
Explanation: TUPE: on transfer of a business, employees' contracts transfer automatically on their existing terms.
Question 79
A 'protected disclosure' (whistleblowing) under the Employment Rights Act 1996 protects workers who:
Select an option first.
Correct answer: B — Disclose information they reasonably believe shows wrongdoing to an appropriate person
Explanation: Protected disclosure: qualifying disclosure, reasonable belief, and disclosure to an appropriate recipient.
Question 80
Under the Limitation Act 1980, the standard limitation period for a simple contract claim is:
Select an option first.
Correct answer: B — 6 years
Explanation: Simple contracts: 6 years from breach (s.5 Limitation Act 1980).
Question 81
The concept of 'duty of care' in negligence was first clearly articulated in:
Select an option first.
Correct answer: B — Donoghue v Stevenson [1932]
Explanation: Lord Atkin's neighbour principle in Donoghue v Stevenson [1932] was the first clear articulation.
Question 82
Which is the correct test for establishing whether the standard of care in negligence has been breached?
Select an option first.
Correct answer: B — Whether a 'reasonable person' in the defendant's position would have acted differently
Explanation: The objective 'reasonable person' standard measures breach in negligence.
Question 83
A 'pure economic loss' in negligence is:
Select an option first.
Correct answer: B — Financial loss unaccompanied by physical injury or property damage, generally not recoverable in negligence unless there is a special relationship of proximity
Explanation: Pure economic loss generally not recoverable in negligence (Spartan Steel); exceptions for special relationships.
Question 84
Hedley Byrne v Heller [1964] established that a duty of care can arise in respect of:
Select an option first.
Correct answer: B — Negligent statements made where the maker assumes responsibility and the recipient reasonably relies on them
Explanation: Hedley Byrne: duty of care for negligent misstatements causing economic loss where there is assumption of responsibility.
Question 85
The Occupiers' Liability Act 1957 imposes a 'common duty of care' on occupiers owed to:
Select an option first.
Correct answer: B — Lawful visitors (those who have the occupier's express or implied permission to enter)
Explanation: OLA 1957 covers lawful visitors; OLA 1984 covers trespassers (lower standard).
Question 86
Under the doctrine of frustration, which of the following would NOT qualify as a frustrating event?
Select an option first.
Correct answer: C — Performance becoming more expensive or less profitable than expected
Explanation: Mere increased expense is not frustration (Davis Contractors); performance must be radically different.
Question 87
Which of the following is NOT a recognised equitable remedy?
Select an option first.
Correct answer: D — Liquidated damages
Explanation: Liquidated damages are a common law remedy agreed in the contract; the others are equitable.
Question 88
The 'officious bystander test' for implying a term in fact asks whether:
Select an option first.
Correct answer: B — If suggested, both parties would say 'of course!' – i.e., the term is so obvious it goes without saying
Explanation: Officious bystander test (Shirlaw v Southern Foundries): so obvious it goes without saying.
Question 89
Which of the following correctly describes 'res ipsa loquitur' in negligence?
Select an option first.
Correct answer: B — Negligence can be inferred from the facts when the accident is of a type that would not normally occur without negligence
Explanation: Res ipsa loquitur: allows the court to infer negligence when the accident speaks for itself.
Question 90
An 'anticipatory breach' occurs when:
Select an option first.
Correct answer: B — One party indicates before the performance date that they will not perform
Explanation: Anticipatory breach: advance indication of non-performance before the due date.
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