FLK1

Question 1

The owner of a top floor flat engaged a building contractor to renovate the flat by carrying out extensive structural works. The contractor warned the flat owner that the work would create substantial amounts of dust likely to affect his neighbour in the flat below. The contractor advised that, for an extra cost, precautions could be taken to minimise the spread of dust. However, the flat owner decided not to pay for this, so the work went ahead without it. The contractor carried out all of the work and at no time did the flat owner undertake any work himself. The work lasted for six months and, as predicted, caused a substantial interference by spread of dust to the neighbour’s flat below.

In an action in the tort of private nuisance by the neighbour against the flat owner to recover damages for the effects of the dust, which of the following best states the likely outcome?

Answer 1

The flat owner is liable in nuisance for damages caused by the dust because the building work for which the contractor was engaged carried a special danger of causing a nuisance.(D) The flat owner is liable. The facts show that the dust has caused an interference with the neighbour’s use and enjoyment of his land which was substantial and unreasonable. Therefore, the contractor has created an actionable nuisance. The general rule is that a person is not liable for the torts of their independent contractor. However, as an exception to this, an occupier of land is liable for a nuisance created by an independent contractor where the work for which the contractor was engaged carried a special danger of creating a nuisance. Therefore, (A) is not correct. (B) is not correct. It is not sufficient for liability in private nuisance that the defendant was the occupier of the land from which the nuisance originated. On the facts, the flat owner is liable, but for the reasons discussed above. (C) is not correct. As a general rule, an occupier would not be liable for a nuisance created by a carefully chosen independent contractor. However, on the facts, the flat owner is liable because he employed a contractor to do work which carried a special danger of causing a nuisance, as explained above. (E) is not correct. Trespass to land deals with intentional and direct interference with the claimant’s possession of land. In contrast, the tort of nuisance covers damage which is indirect, such as the harm that occurred here.QUESTION ID: TRT119

Question 2

On incorporation several years ago, a company issued 100 £1 ordinary shares. The company now wishes to issue 100 preference shares to a new investor. The company has Companies (Model Articles) Regulations 2008 (unamended) for private companies limited by shares as its articles of association.

Which of the following best describes the members’ resolutions which must be passed before the shares can be allotted?

ResponsesPress Enter or Space to submit the answer

Answer 2

A members’ ordinary resolution to give the directors the power to allot the shares, and a members’ special resolution to change the articles to include the preference share rights.(E) The directors have the power to allot shares if the company has only one class of shares. Here the company is issuing a different class, so the directors need the members to pass an ordinary resolution to give them the power to allot the preference shares. Only equity shares are subject to the statutory preemption rights (and not preference shares) so there is no need to disapply preemption rights. The articles need to be changed by special resolution to include the rights enjoyed by the preference shares. None of the choices other than (E) has the correct combination.QUESTION ID: BSL217

Question 3

On 10 April, the owner of a farm posted a letter to a new resident of the area who had expressed an interest in buying the farm. In this letter, the farm owner offered to sell the farm to the resident for £100,000. The offer expressly stated that the offer would expire on 1st June, ‘if acceptance by the offeree has not been received by the offeror on or before that date.’ On 29 May, the resident sent a written acceptance to the farm owner by post. However, the acceptance was not delivered to the farm owner until 2 June. On 4 June, the farm owner entered into a contract to sell the farm to another buyer for more money but did not inform the resident of the transaction. When the resident followed up by phone on 10 June, the farm owner told him that he had sold the farm to another buyer.

Which of the following best describes the results of the above transaction?

Answer 3

No contract between the farm owner and the resident arose on 2 June.(A) No contract arose on 2 June because the farm owner’s offer expired on 1 June, when the farm owner had not received the resident’s acceptance. If a period of acceptance is stated in an offer, the offeree must accept within that period to create a contract. Failure to accept in time terminates the power of acceptance in the offeree (that is, a late acceptance will not be effective and will not create a contract). Under the postal rule, an acceptance is generally effective the moment it is posted in the post box. However, the postal rule does not apply where the offer states that acceptance will not be effective until received. In that case, acceptance is effective only upon receipt. Here, the farm owner opted out of the postal rule because the offer specifically stated that the acceptance must be received by 1 June to be effective. Thus, no contract was created by sending the acceptance on 29 May as there was no valid acceptance. (B) is incorrect because of the requirement that acceptance be received by 1 June. This requirement obviates the postal rule, so that the mere mailing of a letter does not operate as an effective acceptance. (C) is incorrect because the farm owner was not obligated to respond in any way to the message received on 2 June. Once the specified time passed without receipt of acceptance, the offer (as well as the resident’s power of acceptance) was terminated. Thus, receipt of the message on 2 June created neither a contract nor an obligation on the part of the farm owner to respond to the message. (D) is incorrect because no contract, voidable or otherwise, arose on 1 June. As explained above, there could be no contract because acceptance of the offer was not received as specified by the offer. Also, the facts do not indicate a ground under which a contract could be voidable. A voidable contract is a contract that one or both parties may elect to avoid or to ratify (for example, contracts of minors). The facts of this question provide no basis for concluding that any contract that might have arisen between these parties would be voidable. (E) is incorrect as there is no suggestion on the basis of the facts of the scenario that the parties had excluded post as an acceptable means of communication.QUESTION ID: CTR002

Question 4

A client and a solicitor enter into a conditional fee agreement (‘CFA’) in a breach of contract claim. The CFA provides for a success fee of 10% and for the client to be responsible for the solicitor’s disbursements, if unsuccessful. The solicitor’s usual hourly rate is £250. During the course of the case, the solicitor incurs disbursements of £400 and undertakes 30 hours of work. The client loses the case and is ordered to pay the opponent’s costs and disbursements.

Which of the following correctly states the client’s liability for his solicitor’s costs under the conditional fee agreement?

Answer 4

The client must pay the solicitor £400 for disbursements only.(B) The client must pay the solicitor £400 for disbursements. A conditional fee agreement provides that if a case is successful, the solicitor can charge their fee to the client with a percentage uplift (the success fee) beyond the normal fees charged. If the claim is unsuccessful, the client does not pay any fee to their solicitor, although they will be liable to pay the other side’s costs and disbursements and their own disbursements. Here, since the client’s claim was unsuccessful, they are not liable for their solicitor’s fees and no success fee is owed. With regard to the solicitor’s costs, the client is therefore only liable for the disbursements. (A) and (C) are incorrect as the client lost the case and so has no liability for the solicitor’s fees under the conditional fee agreement. (D) is incorrect as the client is still liable for their solicitor’s disbursements even if the claim is unsuccessful. (E) is incorrect because the success fee relates only to the hourly rate and not the disbursements. In any event, a success fee applies only if the client’s claim is successful.QUESTION ID: LGS019

Question 4

Question
A restaurant owner is suing a meat supplier for £3,000 for failure to deliver meat within the timescales of their contract.

If the restaurant owner does not include the Particulars of Claim on the N1 claim form, when must they be served?

Answer 4

Within 14 days of service of the claim form.(D) If the Particulars of Claim (that is, a written statement setting out the details of the claimant’s case) are not included on the back of the claim form, they may be in a separate written document served along with the claim form or within 14 days following service. It follows that the other time periods are incorrect.QUESTION ID: DIS142

Question 5

Question
Three youths agreed to take a taxi without paying the fare. In the taxi they travelled to the city centre, and when the taxi stopped at traffic lights, two of them jumped out and ran off without paying the fare. The third youth was unable to jump out quickly enough and remained in the taxi. When the taxi driver realised what was happening, he set off at speed in an attempt to make sure the remaining youth did not escape without paying. The youth then jumped from the taxi as it was moving and sustained serious injuries.

In an action in negligence by the youth against the taxi driver to recover damages for his injuries, which of the following best describes the likely outcome?

Answer 5

The taxi driver will not be liable to the youth because the defence of illegality will apply.(C) The taxi driver will not be liable because the defence of illegality will apply to defeat the youth’s claim entirely. The youth was engaged in criminal activity by acting pursuant to a plan to make off without paying the fare, which had already been partially carried out. The defence of illegality is a rule of public policy which prevents a claimant from recovering compensation for damage suffered as a result of their own illegal actions. So, the claimant cannot recover damages for harm suffered whilst he is taking part in criminal activity (jumping out of the taxi without paying the fare). The defence of illegality is a complete defence, defeating the claim entirely. (B) is not correct because it only suggests that damages would be reduced. (A) is not correct because the taxi driver did owe the youth a duty of care (established duty owed by driver to passengers). (D) is not correct. The fact that the taxi driver intentionally set off at speed may mean that he was in breach of his duty of care. However, he is likely to escape liability for such breach because the defence of illegality will apply. (E) is not correct. Where the claimant failed to take reasonable care for his own safety, and this contributed to the injuries suffered, the defence of contributory negligence is likely to apply. The effect of this defence is not to defeat the claim entirely, but only to result in a reduction in damages. One the facts here, the youth has failed to take reasonable care for his own safety. However, rather than the partial defence of contributory negligence, he is likely to be met with the complete defence of illegality, as explained above.QUESTION ID: TRT057

Question 6

Question
An employee of a firm of solicitors discovers that his team is not being considered for promotion despite having the same level of qualification and experience as employees in a different team who are being considered. When he asks his line manager about this difference, he is told that this is because the team who is being considered for promotion is available to work late nights and weekends. The employee discovers that the members of the team up for promotion are all single, which is why they are available late nights and weekends, whereas the majority of his team members are married or in civil partnerships.

Under the Equality Act 2010, would the employee’s team have a potential claim for discrimination against the firm?

Answer 6

Yes, because the firm is indirectly discriminating against the employee’s team on the grounds of marriage/civil partnership.(D) The employee’s team would have a potential claim for indirect discrimination on the grounds of the protected characteristic of marriage/civil partnership. Indirect discrimination is when a policy or provision is apparently neutral but on closer examination puts individuals with a protected characteristic at a disadvantage compared with individuals who do not have that characteristic. Here, the firm’s policy is apparently neutral in that it does not say it is only considering single employees for promotion. However, the policy puts people with a protected characteristic, here marriage/civil partnership, at a disadvantage when compared with people who don’t have that characteristic. Here, all of the members of the team up for promotion due to being able to work nights and weekends are single and the majority of the team not up for promotion are married or in a civil partnership, so those who are married or in a civil partnership are put at a disadvantage compared to those who are single. (A) is incorrect because marriage/civil partnership is a protected characteristic under the Equality Act, along with age, sex, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, and sexual orientation. (B) is incorrect because, as explained above, the policy is indirectly, not directly, discriminatory. (C) is incorrect because although indirect discrimination can be justified if for a legitimate reason, the firm must also show that it is achieving this reason by proportionate means. (E) is incorrect because to justify discrimination, it is not enough to use proportionate means; the firm must also show it has a legitimate aim.QUESTION ID: LGS035

Question 7

A landowner had a very large collection of sculptures, which he displayed in the gardens surrounding his home. After making extensive improvements to the gardens, the man decided to open the gardens up to the public so that they could view his sculptures. Pursuant to this permission, an art student entered the gardens and walked round to look at the sculptures. Unfortunately, she tripped on the uneven cobblestone pathway and fell. She broke her ankle and damaged her expensive camera in the fall. She seeks damages for the harm suffered, alleging that the landowner should have paved the pathways with cement rather than used cobblestones.

Which of the following statements best describes the duty owed by the owner of the garden to the art student who fell?

Answer 7

The landowner owed the art student a duty to take reasonable care to see that she will be reasonably safe in using the premises for the permitted purpose.(C) The landowner owed the art student the duty owed to lawful visitors. The landowner has control over the garden and so is the occupier. The art student who fell entered the garden with permission and so is a lawful visitor. The damage was caused by the state of the premises. Hence, the duty of the occupier to his lawful visitors in respect of damage caused by the state of the premises is governed by the Occupiers’ Liability Act 1957. It is a duty to take reasonable care to see that the visitor will be reasonably safe in using the premises for the permitted purpose. (A) is not correct because it does not correctly state the duty owed, which is stated above. Under the 1957 Act, a warning does not absolve the occupier from liability unless it was enough to enable the visitor to be reasonably safe. (B) is not correct. It describes the duty owed by an occupier to persons who are not lawful visitors. This is narrower than the duty owed to lawful visitors. (D) is not correct for two reasons. It misstates the duty owed to persons who are not lawful visitors, and it is inapplicable because the art student is a lawful visitor. (E) is not correct. The duty owed by an occupier to a lawful visitor arises under statute. It is not a common law duty. (It is referred to in the statute as the ‘common duty of care’ because the same duty is owed to all visitors in common.)QUESTION ID: TRT011

Question 8

Two friends are comparing notes from their Constitutional Law class. One friend mentions that she did not write down the definition of the term ‘parliamentary privilege’ when the lecturer mentioned it in class that day. She asks her friend if he took down the definition. The friend affirms that he did.

Which of the following best sets out what the notes should say?

Answer 8

C Statements said in Parliament cannot be challenged before the courts.(C) Parliamentary privilege is a collection of rules which apply to members of the House of Commons and House of Lords and include the rule that statements said in Parliament cannot be challenged before the courts. (A) is incorrect as it reflects the concept of parliamentary sovereignty (sometimes call parliamentary supremacy). (B) is incorrect because it reflects the concept of collective responsibility. (D) is incorrect because it reflects the sub judicie rule. (E) is incorrect because it reflects the Enrolled Bill Rule.QUESTION ID: CNL173

Question 9

An American lawyer and a British solicitor are collaborating on a case involving a multi-national company with offices in both the US and the UK. The solicitor mentions the Cardinal Convention. The US lawyer says he is not familiar with that term and asks the solicitor to explain.

Which of the following would be the solicitor’s most accurate response?

Answer 9

The Monarch always acts on the advice of her ministers, in particular the Prime Minister.(A) The Cardinal Convention is a convention (that is, a rule that is not law but which nonetheless is expected to be followed) which requires the Monarch to act on the advice of government ministers. (B) is incorrect because it reflects the Salisbury Convention. (C) is incorrect because it reflects an aspect of collective responsibility. (The other aspect is that government ministers will support government policy in public or before Parliament, regardless of their own views.) (D) is incorrect because it reflects parliamentary sovereignty (sometimes called parliamentary supremacy). (E) is incorrect because it reflects the Carltona Doctrine.QUESTION ID: CNL174

Question 10

A company has an accounting period that ends June 30. In the year ended 30 June 2023, a company had a tax adjusted trading profit of £800,200 and property income of £45,000. It also realised a chargeable capital gain of £25,000 and a capital loss of £80,000.

In the prior year, the company made a tax adjusted trading profit of £520,000 and chargeable capital gains of £9,000.

How much, if any, of the capital loss arising in the year ended 30 June 2023 may be carried forward to the year ended 30 June 2024?

Answer 10

(D) £55,000. Companies must offset their capital losses against their chargeable gains in the same year, and excess losses must be carried forward to be used against future chargeable gains. Capital losses cannot be carried back and cannot be used against any other type of income. Neither is the annual exemption against capital gains available to companies. Thus, we deduct the £80,000 capital loss from the 2023 tax year gain of £25,000, which leaves a negative £55,000 (loss) to be carried forward into the 2024 tax year. We ignore the trading profit (so (C) is incorrect), and the capital gain made in the year before (so (E) is incorrect).QUESTION ID: TAX096
QUESTION ID: TAX096

Question 11

A teenager was a spectator at a motorbike race. He was standing next to the track when two of the bikes collided together just in front of him. Debris flew into the air and a piece hit the teenager on the arm, causing a minor injury. The teenager was so shocked that he has now begun to suffer from post-traumatic stress disorder (‘PTSD’). Evidence shows that the crash was caused by the negligence of the race organisers.

In an action by the teenager against the race organisers to recover damages for the harm he suffered, which of the following best states the likely outcome?

Answer 11

The teenager is likely to recover damages for both the cut to his arm and the PTSD because the PTSD was a consequence of his physical injury.(A) The teenager will likely be able to recover all of his damages in a negligence action. The organiser owed the teenager a duty of care in respect of the personal injury which he suffered, and this duty extends to psychiatric harm which is consequential on physical injury. The facts show that the duty was breached and that this caused the teenager’s damage, both the physical injury and psychiatric harm. (B) is not correct. The teenager is likely to recover for all his injuries for the reasons set out above. Also, the statement in this choice is too broad because there are circumstances in which a duty of care is owed in respect of psychiatric harm. (C) is not correct because it does not explain the correct reason why the teenager’s claim is likely to be successful. The defendant owed him a duty of care in respect of his psychiatric harm because it was consequent on physical injury, not because he witnessed events with his own senses. (D) is not correct because it does not explain the correct reason why the teenager’s claim is likely to be successful. The defendant owed him a duty of care in respect of his psychiatric harm because it was consequent on physical injury, as discussed above, not because he was in the area of danger. If the claimant had been in the same place but had not suffered physical injury, then it would be correct to say that a duty was owed to him in respect of his psychiatric harm because he was in the area of danger, but that is not the case here. (E) is not correct. The fact that the teenager suffered a physical injury for which the race organiser was liable means that it is not necessary to show that the psychiatric injury from which he also suffered was reasonably foreseeable. The claimant has suffered a personal injury comprising both the physical and psychiatric harm. So long as some personal injury was foreseeable, the defendant is liable since the defendant must take its victim as it finds him.QUESTION ID: TRT144

Question 12

A solicitor is instructed by the driver of a vehicle, who was involved in a road traffic accident involving a coach driver and is taking action against the coach driver to recover the costs of repair to his vehicle. The driver client’s passenger, who is the driver client’s cousin, was injured in the accident. The driver client and passenger want the same solicitor to act for them both and are willing to provide written consent. The coach driver disputes liability and alleges that the driver client was at fault, and there is some evidence to suggest that the driver client was at least partially responsible.

Do the rules of professional conduct allow the solicitor to act for both the driver client and the passenger?

Answer 12

No, because there is a significant risk of a conflict of interest.(B) A solicitor must not act where there is a conflict of interest between clients, or a significant risk of conflict. There is a significant risk of a conflict here-there is some evidence that the driver client may be responsible for the passenger’s injuries-and the solicitor should not accept instructions from them both. (A) is incorrect because a conflict covers the entire firm, not just individual solicitors within the firm. (C) is incorrect because there can be a conflict between family members. (D) is incorrect because at this point there is a significant risk of a conflict of interest. (E) is incorrect. This is not a situation that would enable the solicitor to use the ‘substantially common interest’ exception to the conflicts of interest provisions of the SRA Code of Conduct for Solicitors, RELs and RFLs.QUESTION ID: ETH095

Question 13

Three partners (A, B, and C) are in a partnership together. They have prepared accounts for the relevant tax year ended 31 March and generated a tax adjusted trade profit of £180,000. They have agreed to distribute only £100,000 of these profits. The partnership agreement specifies that Partner C shall receive a salary of £20,000 and that the balance should be allocated to A, B, and C in the profit share ratio of 5:3:2, respectively.

What is Partner C’s share of the partnership profits?

ResponsesPress Enter or Space to submit the answer

Answer 13

£52,000(E) £52,000. First, it should be noted that it does not matter that the partners have agreed to distribute only £100,000 of their £180,000 profit. For tax purposes, a partnership’s entire annual profit must be allocated among the partners. Thus, the partners must allocate the entire £180,000 profit. Partner C receives a salary of £20,000 from the tax adjusted total profit, leaving £160,000 to be distributed. The remaining £160,000 is divided 5:3:2 among the three partners, so Partner C receives their £20,000 plus 2/10ths of £160,000 (£32,000).QUESTION ID: TAX113

Question 14

A man is employed to drive a lifting truck in his employer’s warehouse. One day, the windscreen on the truck shattered suddenly. A piece of glass flew into the man’s eye and injured him. The employer had purchased the truck from a reputable supplier and had carried out regular checks and maintenance. Expert tests have not revealed why the windscreen shattered and have not been able to identify any defect or lack of care in its design or manufacture.

In an action by the employee against the employer to recover damages for his injury, which of the following best states the likely outcome?

Answer 14

The employer is not likely to be liable to the employee because the employee cannot prove that anyone was negligent in the design, manufacture, or use of the truck.(B) The employer is not likely to be liable. An employer owes its employees a duty to take reasonable care to provide them with safe work equipment. This duty is expanded by statute: The Employers’ Liability (Defective Equipment) Act 1969 (‘the 1969 Act’) provides that where an employee suffers personal injury in the course of his employment caused by defect in equipment provided by his employer for the purposes of the employer’s business, and the defect is attributable to the fault of a third party (whether identified or not), the injury shall be deemed to be also attributable to negligence on the part of the employer. On these facts, however, the employee cannot prove that the failure of the truck windscreen was caused by fault on the part of anyone. Because there is no fault to be attributed to the employer under the statute, the employer does not appear to be in breach of its duty and is not likely to be liable to the employee. (A) is not correct because it does not recognise that the statute (the 1969 Act) only attributes negligence to the employer where the claimant can show that the defect was caused by fault on the part of someone. (C) is not correct because it does not explain the correct reason why the employer is not likely to be liable, which is explained above. If the defect in the truck had been caused by negligence on the part of the manufacturer, the 1969 Act would attribute this to the employer, despite the employer having taken reasonable care in purchasing and maintaining the truck. (D) is not correct. The duty owed by the employer is to take reasonable care. It is not a strict duty to ensure safety. Even where the 1969 Act applies, liability depends on establishing some fault, which is then attributed to the employer. (E) is not correct. The correct application of the relevant statute is as discussed above.QUESTION ID: TRT068

Question 15

A company has seven unrelated shareholders. Three of the shareholders are directors. The directors propose to sell some land owned by the company to one of the shareholders who is not a director. The land has been independently valued at £150,000, and it is agreed that this will be the sale price. The company has adopted the Companies (Model Articles) Regulations 2008 (unamended) as its articles of association.

Is a vote of the shareholders required to approve the sale?

ResponsesPress Enter or Space to submit the answer

Answer 15

No, because the transaction falls under the directors’ general authority to manage the business.(A) A vote of the shareholders will not be needed because the sale falls under the directors’ general authority to manage the business. Directors have the power to sell a company’s land to anyone, including a shareholder. A vote of the shareholders is required only if the sale is a substantial property transaction (‘SPT’). A purchase or sale of property is an SPT if the company is buying from or selling to a director or someone closely connected to a director. The special procedure does not apply when, as here, the purchase or sale involves a shareholder who is not a director. It follows that the other choices are incorrect as all of the other choices provide that approval from the shareholders is required. It should be noted that if the buyer were a director, the correct answer would be (B)-the transaction would have to be approved by the shareholders by ordinary resolution and the shareholder would be allowed to vote because any shareholder can vote at a general meeting. QUESTION ID: BSL201

Question 16

Question
A woman contracts with a construction company to have a billiards room constructed in her house at a cost of £100,000. The contract states that the billiards room must accommodate a full size snooker table, with a space of two metres around the edge of the table. The billiards room is constructed, and the woman discovers that there is space of only 1.2 metres around a full size snooker table. This is still enough to allow snooker to be played. The billiards room as built is worth £10,000 less than it would have been if it had been the specified size. The cost of rebuilding the room to the specified size would be £140,000.

What remedy would be available to the woman?

Answer 16

The woman would be entitled to damages for the difference in value between the billiards room as built, and what she had actually contracted for.(C) Damages for breach of contract are designed to compensate the innocent party for their loss. Damages are usually calculated on an expectation interest basis to put the innocent party back into the position they would have been in had the contract been properly performed. In the case of construction contracts, there are two different measures of damages: (1) how much it would cost to cure a defect, and (2) the difference in value between what was contracted for and what the innocent party actually received. In the scenario, the cost of curing the defect is disproportionate to the benefit that would be gained, as the woman can still play snooker as required. However, in cases such as these, the courts have recognised the loss in the value of what was contracted for, or have awarded damages for loss of amenity. In many cases there will be no difference in value between what was contracted and what was actually built. However, where there is a difference, this will be awarded as damages. Therefore (C) is the right answer. (A) is incorrect because whilst the woman is unlikely to have a claim for the cost of cure, in cases like this the courts may award damages for any difference in value and/or for loss of amenity. (B) is incorrect because the cost of rebuilding the billiards room to the original specification outweighs the benefit that the woman would receive from doing so. She can still play snooker in the room as constructed. (D) is incorrect as nominal damages are usually awarded only when there has been no actual loss to the innocent party. (E) is incorrect because, on these facts, there is a clear difference between the value of the snooker room as built and as specified. If there had been no clear difference, then the woman might have recovered only damages for loss of amenity. QUESTION ID: CTR068

Question 17

Question
Concerned about national security, Parliament has passed the Anti-Encryption Act 2021, which makes it illegal to communicate through any messaging system which is encrypted end-to-end, meaning that the police and other agencies cannot access those messages. The 2021 Act also makes it a civil offence to have sent a message through such a system at any time, including before the enactment of the 2021 Act. A campaign group concerned about freedom of expression on the Internet wishes to challenge the validity of the 2021 Act.

Which of the following best explains how the courts are likely to respond to the challenge to the validity of the 2021 Act?

Answer 17

The 2021 Act is valid, even though it is contrary to the rule of law because it has retrospective effect.(A) It is likely that the courts will find the law valid even though it has retrospective effect and, therefore, violates principles of the rule of law. This is because under the doctrine of parliamentary sovereignty, Parliament can legislate contrary to the rule of law. (B) is incorrect because, as indicated, parliamentary supremacy means that Parliament can make a law contrary to the rule of law. (C) is incorrect because it is too broad. The UK constitution includes the rule of law (so there are constitutional implications), but because of parliamentary sovereignty, the constitution is not the supreme law. (D) and (E) are incorrect because Parliament is not limited in its lawmaking powers-it can give government the power to regulate communications.QUESTION ID: CNL012
QUESTION ID: CNL012

Question 18

A bus driver was driving along a road when a child suddenly ran into the road in front of the bus. The driver swerved to avoid the child and collided with a motorbike. The motorbike rider was badly injured. He survived for several weeks and endured great pain and suffering. Then he died, leaving a wife and children who were financially dependent on him. The child who ran into the road cannot be found. Accident investigation reports show that the bus driver was driving carefully and within the speed limit and could not have avoided the collision.

If an action in tort is brought against the bus driver in respect of the accident which killed the motorbike rider, which of the following best states the likely outcome?

Answer 18

There will not be any successful claim for either the motorbike rider’s estate or his dependants because the bus driver was not in breach of his duty of care to the motorbike rider.(B) There will not be any successful claim. Any claim would be based on negligence and would depend on establishing duty of care, breach of duty, and causation of damage. The evidence shows that the bus driver did not fall below a reasonable standard of care and so was not in breach of duty. Therefore, the motorbike rider would not have had a successful claim, and there is no claim to survive his death for the benefit of his estate. Neither is there a claim for the benefit of his dependants because such a claim depends on the deceased having a valid claim had he not died. (A) is not correct. As the motorbike rider could not have a successful claim himself, there could be no claim for loss of dependency because such claim depends on the deceased having a valid claim had he not died. (C) is not correct because it does not give the correct reason for the inability to make a successful claim, which is stated above. (D) is not correct. Any claim by the motorbike rider’s dependants depends on the deceased himself having a valid claim, which is not satisfied here. (Also, had this been satisfied, a claim by the dependants could not recover damages for the motorbike rider’s pain and suffering. This would need to be the subject of a separate claim for the motorbike rider’s estate). (E) is not correct. It is not sufficient that the bus driver caused the loss and damage suffered. He must also have been in breach of the duty of care which he owed to the motorbike rider, as discussed above.QUESTION ID: TRT081

Question 19

Question
A car enthusiast is looking for engine oil suitable for their 1958 Jaguar. They find a supplier advertising specialist oil for vintage cars. They telephone the supplier to check that the oil is suitable for the Jaguar and the supplier says that it is. They complete the supplier’s order form and send it to the supplier with payment. The supplier then delivers the oil. It turns out the oil is not suitable for the Jaguar. The supplier’s order form contained an exclusion clause which says ‘The statutory implied condition of satisfactory quality is hereby expressly excluded’. The car enthusiast nevertheless claims the supplier breached their contract.

Can the supplier rely on the exclusion clause?

Answer 19

No, because the clause does not cover the breach.(B) The enthusiast’s claim will be for breach of the implied statutory condition of fitness for purpose. The condition applies in this case because the enthusiast has made their purpose known expressly to the supplier. The exclusion clause covers only satisfactory quality, so it does not cover the breach that has arisen. (A) is incorrect because this seems to be a consumer contract, so it is subject to the Consumer Rights Act 2015 (‘CRA’), rather than the Unfair Contract Terms Act 1977 (‘UCTA’). (If the UCTA had applied, then the clause would have been subject to the reasonableness test, not void; under the CRA it is void.) (C) is not correct because the supplier did accept the offer contained in the order form. A contract for goods may be accepted by delivering the goods, which is what the supplier did. Therefore, the terms of the order form were terms of the contract. (D) is incorrect for the reasons stated above: whilst the exclusion clause was part of the contract, it governed breaches of quality and the breach here was of fitness for purpose. (E) is incorrect factually; the breach does not go to the quality of the oil, but rather to its fitness for the purposes stated by the enthusiast. QUESTION ID: CTR136

Question 20

A company is planning to change its registered office from its trading address to the office of its accountant. It needs to change its website and notepaper to reflect the change.

When will the change of registered office be effective?

Answer 20

When the Change of Registered Office Address form is registered by the Registrar of Companies.(B) A company may change its registered office by giving notice to the Registrar of Companies. The change takes effect on registration of the notice by the Registrar. (A), (D), and (E) are incorrect as the change is not effective until it is registered at Companies House. (C) is incorrect as the change takes effect on registration of the notice by the Registrar, although there is a 14-day period after registration when a document will be validly served if sent to the previous registered office.QUESTION ID: BSL228

Question 21

A solicitor drinks too much at a nightclub and becomes belligerent. After the solicitor punches a hole in a wall, the nightclub owner tells the solicitor that he will have to pay for the damage. The solicitor says, “Don’t you know who I am?”, and truthfully states that he is a senior partner at a global firm, knows many powerful people in the legal community, and is prepared to pursue various legal claims against the nightclub if the owner pursues the matter further. The owner allows the solicitor to leave. A witness to the incident complains to the SRA.

Which of the following statements best describes whether the complaint will succeed?

Answer 21

The complaint will likely succeed because the solicitor took unfair advantage of the manager.(C) A solicitor should not take unfair advantage of third parties in the solicitor’s professional or personal capacity. As such, a solicitor should not use his professional status or qualification to take unfair advantage of another person in order to advance the solicitor’s personal interests. Here the solicitor used his position to intimidate the manager and was clearly in breach of the SRA Code of Conduct for Solicitors, RELs and RFLs. (A) is incorrect because the fact that the solicitor was acting in a personal capacity is irrelevant; the requirement extends to the solicitor’s private life. (B) is incorrect. It may be true that the solicitor’s conduct embarrassed the firm, but the complaint will succeed because the solicitor unfairly took advantage of a third party. (D) is incorrect. A solicitor can violate the Code of Conduct without being convicted of a criminal offence. The latter would probably lead to disciplinary proceedings against the solicitor and the possibility that he is struck off the roll. (E) is incorrect because taking unfair advantage does not require making false statements.QUESTION ID: ETH012

Question 22

A traffic accident occurred when two cars collided at a junction between a main road and a side road. Driver A was driving along the main road when driver B pulled out of the side road into the side of driver A’s car. Neither driver was physically injured but driver A’s car was damaged. Driver A was exceeding the speed limit at the time of the accident and was later convicted of a road traffic offence. However, the evidence showed that driver A would have been unable to avoid the collision even if she had been driving within the speed limit, and the damage to her car would have been the same.

In an action by driver A against driver B to recover the money she paid for repairs to her car, which of the following best describes the likely outcome?

Answer 22

Driver A is likely to have a successful claim and can recover the full cost of repairs to her car.(D) Driver A will prevail. Driver B owes a duty of care to driver A and has breached that duty, causing A’s damage. No relevant defences apply, as discussed below. (A) is not correct. Driver A’s carelessness does not provide driver B with a complete defence to the claim. In some circumstances the claimant’s carelessness gives rise to the partial defence of contributory negligence, but that defence does not apply on these facts. Although driver A did fail to take reasonable care for her own safety, the facts show that this did not contribute to the harm she suffered, because the damage to her car would have been the same even had she been driving within the speed limit. So, (B) is not correct because driver A’s damages will not be reduced. (C) is not correct. The defence of illegality applies where the claimant seeks to rely on her criminal activity as the basis for her claim. It is a complete defense, so if it were applicable it would bar driver A’s damages rather than reduce them. (E) is not correct. The defence of illegality will not apply where the claimant’s criminal activity is just part of the background circumstances. On these facts, driver A’s offence of exceeding the speed limit does not form the basis of her claim.QUESTION ID: TRT061

Question 23

A man hires a marquee for a party. He pays the hire charges in advance. As the marquee is being transported to the party venue, the vehicle carrying it is involved in a road accident caused by the negligence of a car driver. The marquee is damaged beyond repair. The man is obliged to hire an alternative marquee at a substantial extra cost. The alternative marquee is not as luxurious as the original and the man is disappointed and embarrassed during the party. The original marquee hire company has now gone out of business. The man seeks to recover all of his losses from the car driver.

In an action by the man against the driver, which of the following best states the likely outcome?

ResponsesPress Enter or Space to submit the answer

Answer 23

The man cannot recover damages to compensate for any of his losses.(D) The man cannot recover damages to compensate for any of his losses. The action by the man against the car driver would be in the tort of negligence. Mere disappointment and embarrassment are not a kind of harm that is recoverable in the tort of negligence. The man’s other losses (hire charges paid in advance and extra hire charges) all stem from damage caused to property which did not belong to him and so are classed as pure economic loss, in respect of which no duty of care is owed. (A) is not correct because it assumes that the man could recover the original hire charges and the extra charges, both of which are classed as pure economic loss and so not recoverable. (B) is not correct because mere embarrassment and disappointment are not a kind of harm that is recoverable in the tort of negligence. (C) is not correct because the extra cost of hiring an alternative marquee is classed as pure economic loss in respect of which no duty of care is owed. (E) is not correct because none of the man’s losses are recoverable in the tort of negligence, as explained above.QUESTION ID: TRT133

Question 24

Question
A contractual dispute comes before a judge in the high court. A previously reported case, heard by the Court of Appeal, found in favour of the Claimant. The judge knows that, provided the case before him fulfils certain criteria, he is bound to follow the previous decision of the Court of Appeal.

Which of the following is not a factor in establishing whether a statement made in one case is binding on a later case?

Answer 24

The facts of the case mirror the previous case.(B) The facts of the case do not have to mirror the previous case to establish that a statement in the previous case is binding on the later one. The doctrine of precedent relates to the legal decisions made by judges in higher courts. Decisions made in lower (or equal) courts will rely on the earlier decisions of the higher courts, subject to certain requirements. The Court of Appeal is a higher court than the High Court, so provided that the facts are materially the same (there is no requirement for the facts to exactly mirror each other though), the ratio decidendi (the legal reason for the decision) will need to be followed. (A), (C), (D), and (E) are all factors establishing whether a statement made in one case will be binding on a later case.QUESTION ID: ELS022

Question 25

Question
A freelance solicitor is acting for a client on the sale of a house. She is drafting the relevant contract of sale and will be filing a number of forms with the Land Registry. The freelance solicitor is not authorised as a sole practitioner with the Solicitors Regulation Authority.

Which statement best explains the conditions which the freelance solicitor must meet to be able to provide the client with legal advice?

Answer 25

The freelance solicitor must have three years’ post-qualification experience, have adequate and appropriate professional indemnity insurance, not hold client money, and notify the SRA that they are acting as a freelance solicitor.(E) Subject to a number of conditions, a freelance solicitor can carry out reserved legal activities without being authorised as a sole practitioner by the SRA. These include that the freelance solicitor must have three years’ post-qualification experience, must take out and maintain adequate and appropriate insurance, must not hold client money, and must notify the SRA that they are acting as a freelance solicitor. Here, the freelance solicitor is carrying out a reserved legal activity (preparing documents relating to real estate, including the contract for sale of land) and is not authorised as a sole practitioner by the SRA. In order to provide the client with legal advice in this matter, the freelance solicitor must meet all of the conditions listed in this answer choice. (A) and (D) are incorrect because the freelance solicitor does not need to purchase insurance on the SRA’s minimum terms if she meets the conditions explained above. (B) and (C) are incorrect because they do not correctly list the full set of conditions and requirements explained above. QUESTION ID: LGS010

Question 26

Question
A solicitor is acting for a client who is planning to make a significant investment in a technology company. One night, the solicitor is at a party and encounters an old friend from university, for whom he has never acted. The friend mentions that she works as a scientist for the same technology company, and that she suspects the company will face financial ruin because it recently discovered a serious defect in its bestselling product.

Should the solicitor disclose the information about the technology company to his client?

Answer 26

Yes, because the solicitor has a duty to disclose this material information to the client.(C) Any individual who is advising a client must make that client aware of all information material to that retainer of which the individual is aware. There are certain exceptions to this duty, but none applies to this scenario. Therefore, the solicitor must disclose the information about the technology company to the client. (A) and (E) are incorrect because the solicitor does not owe any duty of confidentiality to the friend-the friend is not, and has never been, his client. (B) is incorrect because it is immaterial that the solicitor learned the information in a personal capacity. (D) is incorrect because there is no indication that the friend’s information is subject to any legal privilege.QUESTION ID: ETH070
QUESTION ID: ETH070

Question 27

A company trading as a country house hotel went into liquidation last month. The liquidator has discovered the following transactions:

An antique desk was sold to a director’s spouse 18 months ago for £5,000. It was valued in the accounts at £100,000

A paddock was sold to a director four years ago for £75,000. Three months later, the director sold the land for £250,000.

A garden statue was sold to a collector for £20,000 12 months ago. It was discovered after sale that it was an early Barbara Hepworth sculpture and valued at £3 million.

Which of the transactions fall within the relevant time to be set aside as a transaction at an undervalue?

Answer 27

The sale of the statue and the sale of the desk only.(A) The sale of the desk and the sale of the statue both are within the relevant time period. The relevant time period for a transaction at an undervalue is within two years of a company’s insolvency. (D) and (E) are incorrect as the sale of the warehouse falls outside of the two-year period. (C) and (B) are incorrect as they each include only one of the transactions made within the relevant time frame.QUESTION ID: BSL184
QUESTION ID: BSL184

Question 27

Question
A solicitor is representing a client in a £750,000 contract claim against a manufacturer. The manufacturer was hired to build a machine that tests the pulling power of train engines. The client claims the machine that was delivered failed to meet the specifications the client provided in a number of ways. Because the engineering aspects of the machine are complex, and the case involves a significant amount of money, the court has allowed each to hire their own expert on the matter.

The court’s order includes a requirement that the parties arrange a without prejudice meeting of the experts to identify the issues on which the experts agree and disagree. The claimant would like to attend the meeting to ensure his position is known.

Which of the following correctly states the legal position relating to the claimant’s attendance at the meeting of the experts?

ResponsesPress Enter or Space to submit the answer

Answer 27

Because the meeting is for the experts to narrow the issues, and the experts owe a duty of impartiality, neither the parties nor their solicitors should attend the meeting.(E) When a court orders experts to meet to agree the issues, neither the parties nor their legal representatives should attend the meeting. As choice (E) indicates, regardless of who instructs the experts, they owe a duty to the court to be impartial and to try to keep costs proportionate; allowing the parties or solicitors to attend could interfere with the impartiality and efficiency sought. Thus, (A), (B), and (C) are incorrect. It’s worth noting that (D) is incorrect not only because neither party should attend, but also because the idea that the defendant is presumed innocent is related to criminal cases and has no application in civil cases. QUESTION ID: DIS133

Question 28

A man worked for a small, unquoted trading company for ten years. Last month, he left the company and sold his 10% shareholding in the company which he had acquired when he began working for the company.

The man realised a chargeable gain of £56,200 on the sale. He had non-savings income for the year of £24,000. He did not have any losses to carry forward.

The annual exempt amount for the relevant tax year is £12,300, and the business asset disposal relief rate was 10% on gains up to £1,000,000.

How much capital gains tax will the man have to pay for the relevant tax year?

Answer 28

£4,390(B) £4,390. Ordinarily, to calculate capital gains tax, we would subtract the annual exempt amount from the chargeable gain to arrive at the taxable gain (£56,200 - £12,300 = £43,900 taxable gain). We then would apply a 10% rate to the amount of the taxable gain that is still within the taxpayer’s basic rate band above the taxpayer’s other income and apply a 20% rate to amounts in excess of the basic rate band. However, we would not do that here because Business Asset Disposal Relief (formerly called Entrepreneurs’ Relief) is available when a person sells shares in a company in which he was an officer or employee for at least two years and the person owned at least 5% of the company’s trading shares. The man qualifies as he was employed by the company for 10 years and owned 10% of the shares. Under the relief a 10% rate applies to the taxable capital gain. Thus, the man would owe £4,390 (£43,900 x 10%).QUESTION ID: TAX070

Question 29

A plumber has been trading successfully for many years as a sole trader. To increase capacity, the plumber has decided to add another plumber to the business. However, the new plumber wants the protection of limited liability. Therefore, the two decide to run the business as a private limited company. Both the plumbers will be directors and equal shareholders in the company.

Which of the following will not have to be included in the application for registration to incorporate their company?

Answer 29

The location of where the company will be trading.(A) The location of the registered office must be provided on incorporation but not the company’s trading address (if this is different); a company can use another address as its registered office, for example, its solicitor’s office. (B) - (E) are wrong as a statement of capital and initial shareholders, details of the company’s business activity, details of persons with significant control, and details of the subscribers must be provided.QUESTION ID: BSL213

Question 30

Question
A company was incorporated several years ago with the Companies (Model Articles) Regulations 2008 (unamended) as its articles of association. To raise more capital for expansion, the company issued new preference shares to an investor. It also appointed the investor as a non-executive director.

What forms must be filed at Companies House, and when, following the issue of shares and the appointment of the non-executive director?

Answer 30

Appointment of Director form within 14 days of appointment and Return of Allotment of Shares form within one month of issue of shares. Following the issue of preference shares, the company file a Return of Allotment of Shares form within one month of the issue of shares. Following the appointment of a director, the company must file an Appointment of Director form within 14 days. None of the other answers have the correct time limits.Q

Question 31

A patient went to a hospital’s emergency department complaining of agonising stomach pains. The duty doctor would not see him and advised him to go home and see his own doctor in the morning. During the night the patient died of a rare form of poisoning which was untreatable.

What is the liability of the hospital to the patient?

Answer 31

The hospital owed the patient a duty of care which has been breached, but no causal link can be established, so the hospital is not liable.(D) The hospital is not liable. It is clear that a hospital owes a duty of care to its patients, and in this scenario the duty was breached because the doctor sent the patient home without examining him. However, as well as a duty of care that is breached, a causal link between the breach of duty and the loss suffered must be established. This is done by applying the ‘but for’ test; that is, but for the hospital’s breach of duty, would the patient’s death have occurred? In this scenario, the death was inevitable as the poisoning was untreatable. Therefore the negligence did not cause the death. (A) is incorrect for the reasons given above. The hospital owes a duty of care that has been breached, but no causal link between the negligence and loss can be established. (B) is incorrect because the poisoning had taken place before the patient arrived at the hospital, so it cannot be said to be an intervening act that breaks the chain of causation. Therefore this argument would not be available to the hospital. (C) is incorrect because a hospital has a duty of care to its patients that was breached. The fact that the patient would have died anyway is relevant to causation but not to establishing breach of duty. (E) is incorrect. The hospital had a duty of care, which was breached by sending the patient home. If the patient had died of an illness that was treatable, the hospital would have been liable for his death. The loss suffered (the death) would not have been too remote from the negligence to establish liability. However, in this particular scenario, liability is not established because of the lack of a causal link, not because of remoteness.QUESTION ID: TRT048

Question 32

A disabled client wants to attend a meeting at the offices of a small high street firm of solicitors. The client is a wheelchair user, and the firm’s offices are accessed by a steep flight of stairs. The firm is considering its obligations under the Equality Act 2010 (the ‘Act’) as it acknowledges that the client is placed at a substantial disadvantage compared to non-disabled clients by not being able to access the offices.

Which of the following best describes the firm’s obligations to the client under the Act?

Answer 32

The firm must make any reasonable adjustments to its premises to allow the client to access them, taking into account the cost and resources of the firm.(D) The firm has an obligation to make reasonable adjustments to its premises to allow the client to access them, taking into account the cost and resources of the firm. The firm acknowledges that the disabled client is placed at a substantial disadvantage compared to non-disabled clients, and therefore the firm has an obligation to provide reasonable adjustments. In assessing what is reasonable, the firm can take into account its resources and the likely cost of the adjustment. (A) is incorrect as the Act applies to the provision of legal services, and firms have a legal obligation to provide reasonable adjustments to ensure that both disabled clients and employees are not placed at a substantial disadvantage compared to those who are not disabled. (B) is incorrect as the firm is not required to make all necessary adjustments, only those which are reasonable. Not all adjustments will be reasonable in the circumstances. Some may be too costly or impractical. (C) is incorrect as there is no obligation to make substantial adjustments, only reasonable ones. (E) is incorrect because, as explained above, the firm has an obligation to make reasonable adjustments.QUESTION ID: LGS045

Question 33

A woman owes her friend £250. The woman is struggling to afford the payment, so her friend agrees to accept £200 from the woman’s husband in full and final settlement of the debt. Six months after agreeing to accept £200, the friend sues the woman for the remaining £50.

Is the friend entitled to the additional £50 after accepting the lesser amount in full and final settlement of the debt?

Answer 33

No, because part payment of a debt by a third party is good consideration for the promise to forego the balance.(A) As a general rule, a promise to accept part payment of a debt will not preclude the promisor from subsequently claiming the balance. This is because there is no consideration flowing from the promisee as regards this separate contract. However (A) is correct, because there are a number of exceptions to this general rule, and payment by a third party, if agreed to by the promisor, is one of them. (B) is incorrect because the contractual relationships here are between the woman and her friend, and the friend and the husband. (C) is incorrect for the reasons already discussed: payment by a third party is sufficient to constitute valid consideration for the friend’s promise to forego the balance. (D) is incorrect because the reason she is not entitled to the money is that the part payment was made by a third party, not because she accepted it in full and final settlement. If payment had not been made by a third party, the general rule would apply and the friend would have been entitled to sue for the balance. (E) is incorrect because privity of contract is not relevant here. Privity of contract concerns the ability of third parties to acquire rights under a contract, but there is no question here of the husband acquiring rights.QUESTION ID: CTR018

Question 34

A bartender, who was also an aspiring musician, admired a violin that a street performer played on the street outside his pub for several weeks. Based on the violin’s appearance and the quality of the sound that it produced, both the street performer and the bartender genuinely believed that it was an old Italian violin, but the matter was never discussed between them. Eventually, the performer agreed to sell the violin to the bartender for a large sum of money. After receiving the violin, the bartender took the violin to be appraised and discovered that it was actually a modern reproduction worth considerably less than he had paid for it.

Is the bartender entitled to claim that the contract is void?

Answer 34

No, because this is a mistake as to the subject matter of the contract. Such contracts cannot normally be set aside.(D) The circumstances in which a court will find a contract void due to a common mistake as to the quality of the subject matter (as opposed to its existence) are very limited. A contract for the sale of an old master which subsequently turns out to be a modern copy is mentioned by the courts as an example of a mistake that would not render the contract void. Similarly, if a violin turns out to be a modern replica rather than an old Italian violin, this is a mistake as to the quality of the subject matter that would not render the contract void. (A) is incorrect. The parties are not at cross-purposes: both the bartender and the street performer thought the violin was an old Italian violin. Their mistake was common to both of them. (If they had been at cross-purposes, this would have been a case of mutual mistake, where the parties are both mistaken, but about different things.) (B) is incorrect because the scenario does not indicate that the street performer used the age or origin of the violin to induce the bartender to enter into the contract. (C) is incorrect as there is no basis for making a contract voidable for mistake in equity. (E) is incorrect because mistake renders a contract void, not voidable.QUESTION ID: CTR103

Question 35

At trial, a witness called on behalf of the claimant gives evidence that contradicts evidence previously given in their signed witness statement. This evidence seriously undermines the claimant’s case.

How should trial counsel for the claimant proceed?

Answer 35

Ask the judge to declare the witness a ‘hostile’ witness so that counsel can cross-examine the witness to prove they made an inconsistent statement in the past.(C) The best option is for the court to declare the witness a ‘hostile’ witness. If the judge is happy to do so, this will enable the barrister to cross-examine the witness on the facts of the case. (A) is incorrect because the judge will not disregard what the witness has said. The best that the trial counsel can hope for is that the court declares the witness hostile. (B) is incorrect because the court is unlikely to agree to a request for an adjournment in these circumstances. (D) and (E) are incorrect because counsel who calls a witness is not free to attack the witness’s credibility unless and until declared a hostile witness by the judge. QUESTION ID: DIS233

Question 36

Three friends set up a partnership 10 years ago. On 1 April, one partner retires and is replaced by a new partner. The partnership notified existing creditors of the change on 31 March, and a notice was published in the London Gazette on 6 April.

The partnership entered into two contracts to buy goods on 2 April, one with an existing supplier and one with a new supplier.

Which of the following best describes the liability of the new partner and the retiring partner?

Answer 36

The new partner will be liable for both debts and the retiring partner will be liable for the debt to the new supplier.(D) The new partner will be liable for both debts and the retiring partner will be liable for the debt to the new supplier. A partner is liable for all debts incurred whilst they were a partner. Here, the new partner came into the partnership on 1 April and both debts were incurred on 2 April. Therefore, the new partner is liable for both debts. A retiring partner is liable for debts incurred by the partnership after they retire until the correct notice is given: existing suppliers are entitled to actual notice of retirement, whereas a notice in the London Gazette is sufficient notice for anyone who has never dealt with the partnership whilst the retiring partner was a partner. Here, a notice was published in the London Gazette on 6 April, and the contract with the new supplier was made before that–on 2 April. So, the retiring partner is liable on that debt. On the other hand, the contract with the existing supplier was made the same day (2 April) and that supplier was given notice earlier, on 31 March. So, the retiring partner is not liable on that debt. It follows that the other choices are incorrect. QUESTION ID: BSL156