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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 91
A 'condition precedent' to a contract is:
Select an option first.
Correct answer: B — An event that must occur before a contract or obligation comes into force
Explanation: Condition precedent: must occur before the contract or obligation becomes effective.
Question 92
The maxim 'ex turpi causa non oritur actio' in tort law means:
Select an option first.
Correct answer: B — No action arises from a claimant's own illegal or seriously immoral act
Explanation: Illegality defence: claimant engaged in illegal activity cannot recover.
Question 93
A 'collective agreement' between employer and trade union is:
Select an option first.
Correct answer: B — Generally not legally enforceable as a contract, but its terms may be incorporated into individual employment contracts
Explanation: Collective agreements are presumed not binding (s.179 TULRCA 1992); terms may be incorporated into individual contracts.
Question 94
The implied 'duty of fidelity' in contracts of employment requires employees to:
Select an option first.
Correct answer: B — Act honestly and loyally in the employer's interests, not work for competitors, and not disclose confidential information without authorisation
Explanation: Fidelity: honesty, loyalty, no conflicts of interest, protection of confidential information.
Question 95
The test for a penalty clause (Cavendish Square v Makdessi) asks whether the clause is:
Select an option first.
Correct answer: B — A genuine pre-estimate of loss or a deterrent penalty out of all proportion to the party's legitimate interest
Explanation: Penalty clause: deterrent out of proportion to legitimate interest is unenforceable.
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Question 96
Joint tortfeasors causing an indivisible loss are:
Select an option first.
Correct answer: B — Jointly and severally liable – the claimant can recover the full amount from any one of them
Explanation: Joint and several liability: claimant can recover in full from any joint tortfeasor.
Question 97
In an unfair dismissal claim, an employment tribunal must FIRST ask:
Select an option first.
Correct answer: B — What was the reason (or principal reason) for dismissal?
Explanation: Tribunal first identifies the reason for dismissal, then assesses whether it is fair.
Question 98
'Nominal damages' in contract law are awarded:
Select an option first.
Correct answer: B — Where breach has occurred but no actual loss is suffered, affirming the breach
Explanation: Nominal damages acknowledge breach without compensating for loss.
Question 99
The Consumer Rights Act 2015 implies into consumer digital content contracts that the content must be:
Select an option first.
Correct answer: B — Of satisfactory quality, fit for purpose, and as described
Explanation: CRA 2015 ss.34-36: satisfactory quality, fit for purpose, and as described.
Question 100
A 'guarantee' differs from an 'indemnity' in that a guarantee:
Select an option first.
Correct answer: B — Creates a secondary liability – the guarantor is only liable if the principal debtor fails to pay
Explanation: A guarantee is secondary (liable only on principal's default); an indemnity is primary.
Question 101
The Human Rights Act 1998 can be directly invoked against:
Select an option first.
Correct answer: B — Public authorities (including courts, government bodies, and those performing public functions)
Explanation: HRA 1998 makes it unlawful for public authorities to act incompatibly with Convention rights.
Question 102
A 'proprietary estoppel' claim arises when:
Select an option first.
Correct answer: B — A person acts to their detriment in reliance on a clear assurance that they will acquire an interest in land, and it would be unconscionable to resile from that assurance
Explanation: Proprietary estoppel (Thorner v Major): assurance, reliance, detriment, unconscionability.
Question 103
The phrase 'time is of the essence' in a contract means:
Select an option first.
Correct answer: B — The time specified for performance is a condition, so failure to perform by that time allows the innocent party to terminate
Explanation: Time of the essence: time for performance is a condition; failure entitles termination.
Question 104
Which of the following correctly distinguishes 'restitution' as a legal remedy?
Select an option first.
Correct answer: B — Restoring to the claimant a benefit unjustly enriched in the defendant's hands at the claimant's expense
Explanation: Restitution (unjust enrichment): reverses an unjustified benefit retained by the defendant.
Question 105
The ACAS Code of Practice on Disciplinary and Grievance Procedures is significant because:
Select an option first.
Correct answer: B — Failure to follow it can lead to a tribunal adjusting compensation awards up or down by up to 25%
Explanation: ACAS Code: tribunals can adjust compensation by up to 25% for unreasonable non-compliance.
Question 106
Which of the following is true about zero-hours contract workers?
Select an option first.
Correct answer: B — They may still have employment rights depending on the actual working relationship
Explanation: Status depends on the reality of the relationship, not the contract label.
Question 107
The 'purposive approach' to statutory interpretation focuses on:
Select an option first.
Correct answer: B — The overall purpose that Parliament intended the legislation to achieve
Explanation: The purposive approach seeks to give effect to Parliament's intention and the purpose of the legislation.
Question 108
Under the Equality Act 2010, 'harassment' related to a protected characteristic involves:
Select an option first.
Correct answer: B — Unwanted conduct related to a protected characteristic that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment
Explanation: Harassment (s.26 EA 2010): unwanted conduct related to protected characteristic with the required purpose or effect.
Question 109
The Consumer Rights Act 2015 implies which statutory rights into B2C contracts for sale of goods?
Select an option first.
Correct answer: B — Goods must be of satisfactory quality, fit for purpose, and as described
Explanation: CRA 2015: satisfactory quality, fit for purpose, and as described.
Question 110
Which of the following is NOT a recognised source of law in the English legal system?
Select an option first.
Correct answer: D — Contracts between private individuals
Explanation: Contracts create rights between the parties but are not a general source of law.
Question 111
A 'statutory demand' procedure for debts applies when a debt is:
Select an option first.
Correct answer: B — Undisputed, due, and exceeds £750 for companies
Explanation: Statutory demand: undisputed debt owed by a company of £750+; non-payment evidences insolvency.
Question 112
The 'nemo dat quod non habet' principle means:
Select an option first.
Correct answer: B — A person cannot give a better title to property than they themselves have
Explanation: Nemo dat: no one can give a better title than they possess.
Question 113
The principle that a court will not enforce a contractual term contrary to public policy is illustrated by:
Select an option first.
Correct answer: B — Unreasonably wide restraint of trade clauses that go beyond protecting a legitimate business interest
Explanation: Restraint of trade: courts refuse to enforce clauses wider than necessary to protect a legitimate interest.
Question 114
In which situation would a court be most likely to find a contract void for 'common mistake'?
Select an option first.
Correct answer: B — Both parties, at contracting, are unaware that the specific subject matter does not exist
Explanation: Common mistake (Couturier v Hastie): most clearly where both parties contract unaware that the subject matter does not exist.
Question 115
Which of the following statements about the doctrine of precedent in the Court of Appeal is correct?
Select an option first.
Correct answer: B — The Court of Appeal is generally bound by its own previous decisions but may depart in limited circumstances
Explanation: The Court of Appeal is generally bound by its own decisions (Young v Bristol Aeroplane); limited exceptions exist.
Question 116
The 'Bolam test' used in professional negligence cases provides that:
Select an option first.
Correct answer: B — A professional is not negligent if they act in accordance with a practice accepted as proper by a responsible body of practitioners in that field
Explanation: Bolam test: not negligent if a responsible body of professionals in the field would have acted the same way.
Question 117
Which of the following correctly describes the legal effect of a 'void' contract?
Select an option first.
Correct answer: B — The contract is treated as if it never existed; neither party has rights or obligations under it
Explanation: A void contract has no legal effect from the outset. A voidable contract (A) can be rescinded by the innocent party. C is the normal remedy for breach; D describes a voidable contract.
Question 118
The 'but-for' test of causation in negligence is satisfied when:
Select an option first.
Correct answer: B — But for the defendant's breach, the claimant would not have suffered the loss
Explanation: The but-for test asks: would the claimant have suffered the loss but for the breach? Only if the answer is 'no' is causation established (Barnett v Chelsea & Kensington Hospital).
Question 119
An employer is vicariously liable for an employee's tort only if it was committed:
Select an option first.
Correct answer: B — In the course of employment
Explanation: Vicarious liability attaches when the tort is committed in the course of employment. A substantial deviation – a 'frolic of their own' – breaks the connection. A, C and D are outside the course of employment.
Question 120
A term implied 'in fact' differs from a term implied 'in law' in that:
Select an option first.
Correct answer: B — Terms implied in fact are implied to give effect to the presumed intention of the parties in a specific contract; terms implied in law apply automatically to all contracts of a particular category
Explanation: Terms implied in fact (officious bystander/business efficacy) fill gaps in a specific contract. Terms implied in law (e.g., Sale of Goods Act) apply automatically to all contracts of that type.
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