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Which of the following will NOT as a general rule amount to consideration?

  1. A promise to carry out an existing contract.
  2. A promise to pay the amount due at an early date.
  3. A promise to do more than was originally agreed.
  4. A promise to do an act in return for payment.

Answer(s): A



S contracted to buy a portable television from AB (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality".

Which of the following is correct?

(i) It is a criminal offence to attempt to exclude the term as this is a consumer sale.

(ii) The clause is void unless it can be shown to be reasonable.

(iii) The clause is void.

  1. (i) only
  2. (ii) only
  3. (i) and (iii) only
  4. (iii) only

Answer(s): C



In the UK, which organization that governs the accounting profession has taken the lead with respect to ethical considerations?

  1. The Accounting and Auditing Policy Committee
  2. The Financial Reporting Council
  3. The Financial Standards Accounting Board
  4. The International Accounting Standards Board

Answer(s): B



A Ltd is under contract to manufacture machinery for B Ltd for £200,000. Which of the following is a valid excuse for A Ltd failing to complete the contract on time?

  1. A Ltd's factory was flooded.
  2. A Ltd had taken on too many orders and had to give priority to its regular customers.
  3. A Ltd's employees went out on strike.
  4. A number of A Ltd's key workers were absent through illness.

Answer(s): A






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