Fundamentals Level – Skills ModuleTime allowed: 2 hoursThis paper is divided into two sections:Section A – ALL 45 questions are compulsory and MUST beattemptedSection B – ALL FIVE questions are compulsory and MUST beattemptedDo NOT open this paper until instructed by the supervisor.You must NOT write in your answer booklet until instructed by thesupervisor.This question paper must not be removed from the examination hall.Paper F4 (ENG)Corporate and Business Law(English)Monday 8 December 2014The Association of Chartered Certified Accountants
Section A – ALL 45 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer toeach multiple choice question.1Which of the following involves an offer which may only be accepted by performing an action?AA collateral contractBA unilateral contractCA bilateral contract(1 mark)2An agency relationship which is made retrospectively is referred to by which of the following terms? (1 mark)3In contract law, the ‘market price rule’ arises in relation to which of the following?(2 marks)4In relation to a debenture, which of the following is NOT true?(2 marks)5Tan writes to Yun stating that he will sell his car to him for £10,000. At the same time, Yun writes to Tan stating thathe will buy his car for £10,000.Which of the following statements applies to this situation?AThere is a binding agreement due to the postal ruleBThere is a collateral contractCThere is neither an agreement nor a contract(1 mark)2
6Which of the following statements about contracts of employment is true?7Where directors make a false statement of solvency prior to a members’ voluntary liquidation, which of thefollowing have they committed under the relevant legislation?