2019/2020

Question 1

A characteristic of a limited company is that

Answer 1

its activities are defined in the memorandum of association.

Question 2

In negligence, what standard of care would be required of a newly-qualified electrician?

Answer 2

The standard for the electrical profession only.

Question 3

One of the requirements for a claimant to succeed in an action for trespass to the person is

Answer 3

intention

Question 4

A gardener who was entitled to £2,000 under a contract with a private client assigned her rights
under the contract to one of her plant suppliers. To be legally valid as a statutory assignment, this
assignment must be

Answer 4

absolute.

Question 5

After what period of time does an action for breach of a simple contract become statute-barred if
the action is NOT in respect of personal injuries?

Answer 5

6 years.

Question 6

A gratuitous promise is contractually valid and binding on the promissor when it is

Answer 6

in the form of a deed.

Question 7

An agent may be able to protect his rights to remuneration and indemnity by

Answer 7

exercising a lien on the principal’s property.

Question 8

The subject matter of an insurance policy CANNOT be

Answer 8

a future inheritance.

Question 9

The risk manager of a large construction company forgot to notify his property insurer that one of
the contracts his company was accepting would involve hazardous work. In the event of a claim
arising from this one contract, the insurer has the statutory legal remedy of

Answer 9

applying any different terms relating to hazardous work as if the insurance policy had contained
these terms

Question 10

What remedy is available to an insurer where a commercial policyholder has breached a collateral
condition concerning a minor matter?

Answer 10

Claim for damages.

Question 11

When two perils are described as interdependent, this means that they combine to cause a loss

Answer 11

but neither peril would cause some loss on its own.

Question 12

A policyholder’s motor vehicle has suffered damage caused by a negligent third party. The damage
cost £900 to repair with the insurer making payment of £800 after deduction of the £100 policy
excess. The insurer recovered £500 from the negligent motorist. How will this £500 recovery be
distributed?

Answer 12

The insurer is entitled to the full £500.

Question 13

A persuasive precedent may be set by

Answer 13

• A decision made in the lower courts.
• A decision made by the Judicial Committee of the Privy Council.
• Obiter dicta of senior judges in a high-level decision.

Question 14

Which torts are actionable per se?

Answer 14

Assault.
False imprisonment.
Trespass to land.

Question 15

When may an agent be legally allowed to delegate contractual duties to a sub-agent without the
express permission of the principal?

Answer 15

• In accordance with trade custom.

- Out of necessity.

Question 16

What statutory remedy is available to an insurer where a qualifying misrepresentation, which is
careless, has been made by a consumer policyholder?

Answer 16

• Amend the contract terms from those originally agreed.
• Proportionately reduce the amount to be paid on a claim if a higher premium would have been
  charged.

Question 17

Which rules apply to deal with issues regarding inconsistencies or contradictions in policy wordings?

Answer 17

• An express term overrules or modifies any implied term.
• Handwritten endorsements take priority over printed words in a policy document.
• A policy document takes priority over a proposal form.

Question 18

The operation of the principle of subrogation, and the way in which any recovery from a third party
is shared between the policyholder and the insurers, depends on

Answer 18

• the amount of the recovery in relation to the loss.

- whether the insurance covers the loss in full.