Cima C05 Exam Question No 43

Question No 43:

 Which of the following examples of performance amounts to good consideration?

• i. The performance of an existing duty under the general law.
• ii. The performance of an existing contract in return for a promise by a third party.
• iii. The performance of an act, followed by a promise to pay for that act.

A. i only.
B. ii only.
C. i and ii only.
D. iii only.

Answer: B

Cima C05 Exam Question No 42

Question No 42:

Which ONE of the following statements is incorrect?

A. Payment by the debtor of less than the full amount of the debt will satisfy the whole debt at common law, if paid early at the request of the debtor.
B. Payment by a third party of less than the full amount of the debt will discharge the whole debt at common law.
C. Payment of less than the full amount of the debt will discharge the whole debt at common law, if agreed to by the creditor.
D. Payment of less than the full amount of the debt will discharge the whole debt at common law, if extra consideration is provided by the debtor.

Answer: C

Cima C05 Exam Question No 41

Question No 41:

Which of the following statements is correct?

i. If an agreement is stated to be “binding in honour only”, the parties have decided that the agreement should not have contractual force.
ii. If an agreement is not in writing, the parties are presumed to have intended that it should not be legally enforceable.

A. i only.
B. ii only.
C. Neither i nor ii.
D. Both i and ii.

Answer: A

Cima C05 Exam Question No 40

Question No 40:

Which of the following is INCORRECT?

i. Legal title cannot pass on a contract induced by misrepresentation.
ii. Misrepresentation renders a contract voidable.
iii. A victim of negligent misrepresentation may seek rescission and damages.

A. i only.
B. ii only.
C. i and iii only.
D. ii and iii only.

Answer: A