Your task:

The examination paper consists of two parts:

Part A – Multiple choice questions
Part B – Case study questions

Important note: Please note the nature of this assessment is an INDIVIDUAL

work. All form of collaboration between students is not allowed.

Part A – MULTIPLE CHOICE QUESTIONS

(4 marks/question – Total: 40 marks)

1. Which of the following does not belong to delegated legislation in the English law?
A. Statutory instruments.
B. Acts of Parliament.
C. Orders in Council.
D. Bye-laws.

2. Consideration need not be adequate but must be:

A. Monetary.
B. Sufficient.
C. Of equivalent value to the goods.
D. Accepted by the other party.

3. In the event of a breach of contract, what is the purpose of damages?

I. To punish the breaching party.
II. To compensate the injured party.
III. To put the injured party in the same position as if the contract had been carried out
properly.
A. (I) only.
B. (II) and (III) only.
C. (III) only.
D. (I), (II) and (III).

4. Which one of the following is not an equitable remedy for breach of contract?
A. Damages.
B. Specific performance.
C. Rescission.
D. Injunction.

5. In the context of English law, which of the following is a test to determine a worker’s
status as an employee or an independent contractor?
A. The neighbourhood test
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 B. The reasonableness test
C. The remoteness test
D. The control test

6. Which of the following statements is correct about employer’s liability?

I. An employer is vicariously liable for the torts of employees committed in the course
of their employment.
II. An employer is vicariously liable for the torts of independent contractors, if they were
committed whilst carrying out work for the employer.
A. (I) only.
B. (II) only.
C. Both (I) and (II).
D. Neither (I) nor (II).

7. Which implied obligation is imposed on the employer in a contract of employment?

A. Duty of faithful service.
B. Duty to apply reasonable care and skill.
C. Duty to insure.
D. Duty to obey lawful and reasonable orders.

8. A company’s contractual capacity before incorporation is limited in that it may:

A. Only make contracts necessary to form the company.
B. Only ratify, once formed, contracts necessary to form the company.
C. Only make or ratify, once formed, contracts necessary to form the company.
D. Not make or ratify, once formed, any contract even if necessary to form the
company.

9. Which of the following best describes the term “veil of incorporation”?

A. A company pays corporation tax
B. A company is a separate legal entity to its shareholders and directors
C. A company has perpetual succession
D. A company issues shares

10. What is the name given to the person in charge of a voluntary winding-up of a
company?
A. Administrator
B. Receiver
C. Chargee
D. Liquidator

Total (40 marks)

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 Part B – ANSWER BOTH QUESTIONS
(30 marks/question - Total: 60 marks)

Question 1:

Julia was appointed as company secretary of Meditech Plc, a company which

specializes in manufacturing and distributing medical equipment. She has
professionally recognised qualifications as an accountant and 5 years of
working experience as a company secretary. After the appointment, she
concluded the two contracts in the name of Meditech Plc. Explain whether the
contracts entered into by Julia are binding on Meditech Plc?

i. A long-term contract with DIY Plc for maintenance and repair services of
elevators in the headquarter office.

ii. A commercial contract to sell medical equipment to a foreign trading

partner named Golden Healthcare Ltd.

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Question 2:
David is a majority shareholder in two companies. These companies are facing
difficulties with their business and David has approached you, as a lawyer, to
give him some legal advice. His question is whether or not there is sufficient
ground in each case for compulsory winding-up by the court.
i. Majestic Ltd. is a private trading company. This company owed £1,500 to
a supplier of stationery. The supplier has served a formal written demand
on the company three months ago and the company fails to pay the debt.
ii. Galaxy Plc. was registered as a public limited company 6 months ago
but it has not yet been issued with a trading certificate.

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