CCO - Drafting Of Contracts LEAD Online Assessment Multiple Choice Questions And Answers

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CCO - Drafting of Contracts Online
Assessment Question and Answer LEAD


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Question 1 of 100 1.0 Points
Where two or more profit companies amalgamate or merge, they must satisfy the
________ test.


 A. due diligence

 B. solvency and liquidity

 C. purchasable

 D. solvency




Question 2 of 100 1.0 Points
In the drafting of Contracts redundancy of words and expressions must be avoided.
Which one of the following amounts to ‘redundancy’?


 A. “hereunto”

 B. “determine”

 C. “due and owing”

 D. “carry out”

, Question 3 of 100 1.0 Points
In terms of drafting contracts avoid, where possible, ________, or written
instructions.


 A. one on one

 B. video conferencing

 C. telephonic

 D. neither of the aforementioned possibilities




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Question 4 of 100 1.0 Points
What is the maximum interest rate for ‘other credit agreements’ under National
Credit Act?

 A. (RR X 2.2) + 5% per year

 B. (RR X 2.2) + 15% per year

 C. (RR X 2.2) + 2% per year

 D. (RR X 2.2) + 10% per year




Question 5 of 100 1.0 Points
Regulation 39 to the National Credit Act introduces a Short-Term Credit Transaction.
This is where the amount advanced does not exceed R8 000 and is repayable in six
months or less. Small cash loans and small pawn transactions often comply with
these requirements. But if it is not the first loan of the calendar year, the R8 000
increases to ________.

 A. R10 000

 B. R12 000

 C. R9 000

 D. R13 500