Assorted questions Flashcards
what does Stare Decisis mean?
to stand by things decided
is the supreme court bound by its previous decisions?
no
are writings of authors of repute classed as persuasive precedent?
yes
where a solicitor prepares a Will, the client dies and a potential beneficiary does not benefit, who can sue for tort?
the personal representatives; or
the potential beneficiary
beneficiary
if you want to sell a property in joint tenancy co-ownership, do you need agreement from all owners?
yes, at common law, maybe not equity
if you want to leave a joint tenancy, do you need agreement from the co-owners?
no, notice by writing only. no need for consent
how may a joint tenancy be converted into a tenancy in common?
by mutual agreement of the joint tenants;
by unilateral notice
1,2 or both?
either by 1 or 2
an individual’s domicile must be determined according to common law
true or false?
false.
an individual’s domicile must be determined according to english law
will a divorce of the parents have any impact on the domicile of origin for the child?
no
Many taxes provide for exemptions or special rules based on an individual’s marital status.
Which TWO of the following statements are correct?
✓For CGT purposes, transfers of assets between spouses/civil partners who are living together in a tax year take place at no gain/no loss
✓For CGT purposes, transfers of assets between spouses/civil partners take place at no gain/no loss
✓For IHT purposes, transfers of assets between UK spouses/civil partners are exempt
✓For IHT purposes, transfers of assets between UK spouses/civil partners who are living together in a tax year are exempt
For CGT purposes, transfer of assets between spouses/civil partners who are living together in a tax year take place at a no gain/no loss.
For IHT purposes, transfer of assets between spouses/ civil partners are exempt
The FSMA 2000 provides that carrying on a regulated activity when not authorised or exempt may be a criminal offence, punishable on indictment.
Membership of which one of the following bodies will entitle a tax adviser to help a client to set up a stakeholder pension scheme?
ATT
CIOT
ICAEW
FRA
ICAEW - because they are a DPB designated professional body
if someone wants to purchase a business but are worried about undisclosed debts that they will inherit, what should they ask to be included in the contract to protect them from debts?
indemnities
what is a concurrent will?
two wills that take place at once
Registered patents may be protected for up to _ years?
20 years
A tenant’s lease has expired and the tenant is still in occupation of the property. The tenant remains liable for rent and the landlord may claim possession of the premises at any time.
This situation is known as what?
Tenancy at sufferance
which of the voluntary liquidations is only for an insolvent company?
creditors voluntary liquidation
are audits necessary for a partnership, provided the partnership is considered ‘large’?
no
what is not ALWAYS needed when registering for a company? (hint: think Model)
articles of association.
i.e., if you want to use model articles, you dont need to include in registration
what is ‘cheating the public revenue’?
not paying tax to hmrc
is cheating the public revenue a crime under the fraud act?
no
in what circumstances can a sole trader be treated as separate to their business for tax purposes?
where a sole trader takes some of their trading stock for private purposes
where apparatus owned by the owner in a personal capacity is then used in the course of business
privately owned property that is appropriated by them to trading stock
A trust set up intentionally by the settlor during their lifetime is known as…
Inter vivos trust
Trustees can appoint a new trustee when an existing trustee leaves the country for more than _ months
12
what is a consent order?
it is to do with marriage - when the two parties divorce and reach their own agreement on ancillary relief proceedings, they can ask the court to make the agreement an order of court - this is called a consent order
how will the divorce/dissolution cause a change in the Will?
the spouse who was originally executor or trustee/beneficiary now lose that effect of being one. it must be clear that this does NOT revoke the entire will. the clauses containing the former spouse cease to have effect
will a marriage revoke a will?
yes, except for when the person who was making the Will at the time knew they were going to get married and intended that the Will created will not be revoked upon union
within preferential creditors, which type of pension fund’s contributions is a perferential creditor?
occupational pension fund
employee’s wages in respect of the previous _ months is a preferential creditor
4
does an LLP have unlimited liability for its debts?
yes
how is it that an LLP has limited liability?
for each partners capital contribution
but for debts of the LLP, there is unlimited liability
which one is not required in the statement of capital?
- the rights attached to each share
- the currency in whcih the shares are denominated
- the number of shareholders in the company
- the total number of shares issued by the company
the number of shareholders in the company
which type of intellectual property is not needed to be registered?
copyright
can a licensor sue a licensee for infringement?
no, no right to sue once a license has been granted
what is the main reason for dismissal by redundancy?
if an employer ceases or intends to cease a business in which the employee was employed
is a key duty of a director to ‘promote, in bad faith, the success of the company’?
no,
to promote, in good faith, the success of the company
is a key duty of a director to not accept benefits from third parties?
yes this is a key duty
would a vary of class rights be classed as a re-organisation of shares?
yes
if an agreement for the sale of goods has taken place, however now the seller is having second thoughts, and refuses to carry out their contractual obligation, it is said that the seller is _ the contract
repudiating
a private company can reduce issued share capital provided the Articles allow it, the shareholders pass a special resolution, and either:
(2)
- Court approval is obtained
- Shareholder must provide a solvency statment within 15 days in advance of the resolution
3 examples of fungible property
shares in a company, money in a bank, milk quota in the dairy farming industry
what is a negative pledge clause?
a clause to state that if a floating charge is created over a company’s assets, a fixed charge cannot then be subsequently put over the same property and take priority
what is the negative resolution procedure and affirmative resolution procedure, in simple terms
negative resolution procedure = stat instrument takes effect unless said otherwise by one of the Houses
affirmative resolution procedure = stat instrument needs approval from both Houses before taking effect
whats the difference between an LP and LLP?
there is no general partner in an LLP, therefore all partners just have limited liability as to their capital contribution
how many designated members must an LLP have to take responsibility for compliance aspects?
two designated members
how are partners of an LLP taxed?
the same as a partnership - pays income tax on their share of trading profits + pays their own class 2 and 4
can executors act before probate is granted?
yes, whereas administrators are only appointed once the settlor has died and their powers only take effect to prospectively see.
the grant of representation for an executor is named grant of probate. what is the grant of representation called for an administrator?
grant of letters of administration
what is the grant of representation called where the deceased has left a will but there is no executors to act, and where an administrator is appointed?
grant of letters of administration with Will annexed
‘all personal chattels’
specific legacy
demonstrative legacy
residuary legacy
general legacy
specific legacy
a horse
specific legacy
demonstrative legacy
residuary legacy
general legacy
a general legacy
can you change the terms of a trust before the trust is completely constituted?
yes
when does a valid trust take effect from?
from when the property is transferred from the settlor to the trustees
what are the criminal penalties for financial assistance from a plc for the purchase of shares?
up to 2 years + unlimited fine
