ACCA LW Common Mistakes & Examiner Insights
LW rewards precision: the right case, the right rule, the right offence. Most lost marks come from confusing similar authorities or misremembering a specific rule, not from a lack of understanding. Here are the recurring traps.
1. Get the leading cases right
Case-law questions hinge on the exact authority — Carlill (offer to the world), Salomon (separate legal personality), Donoghue v Stevenson (duty of care), Hadley v Baxendale (remoteness), Hong Kong Fir (innominate terms), Freeman & Lockyer (apparent authority), Hyde v Wrench (counter-offer), Adams v Lindsell (postal rule). Match the case to the principle precisely.
2. Offer and acceptance rules are specific
A counter-offer destroys the original offer (Hyde v Wrench); the postal rule fixes acceptance at posting (Adams v Lindsell); an invitation to treat is not an offer. These rules are tested on their exact mechanics.
3. Failure to prevent fraud is the new offence
The syllabus now includes the failure to prevent fraud offence and the failure to prevent the facilitation of tax evasion, including the meaning of a "relevant body". Know what the offence covers and who it applies to.
4. Fraudulent and wrongful trading sit under fraud, not insolvency
Fraudulent and wrongful trading are examined under the fraudulent and criminal behaviour area, not the insolvency area. Know the distinction: fraudulent trading requires intent to defraud; wrongful trading does not.
5. Director, secretary and auditor have distinct roles
Don't blur the duties and powers of directors, the company secretary and the auditor. Each has a defined statutory role, and questions test the boundaries between them.
6. Capital maintenance rules are precise
Share capital, distributable profits and the rules on dividends and capital reduction each have specific conditions. A dividend can only be paid from distributable profits — the detail matters.
7. Insider dealing, market abuse, money laundering and bribery are separate
These offences overlap in theme but differ in elements and penalties. Match the facts to the correct offence rather than reaching for the nearest-sounding one.
Practise these in context: every LW question on GoQualified is mapped to the syllabus with a full worked explanation, so you can see exactly where the marks are. Switch to Exam Sim mode for a timed LW mock exam under real exam conditions. Free, no login.