M III

Question 1

A solicitor is issuing a claim form in respect of his client who is suing an online auction house for breach of contract. The Particulars of Claim will be served separately.

Which of the following is correct with respect to the statement of truth?

There is no need to complete the statement of truth on the claim form as it relates to the Particulars of Claim.

The requirement is to complete the statement of truth on either the Claim Form or the Particulars of Claim, but it need not be on both.

The statement of truth must be completed on the claim form and signed by the client.

The statement of truth must be completed on the claim form and signed by both the client and the solicitor.

The statement of truth must be completed on the claim form and signed by the solicitor.

Answer 1

(C) The statement of truth must be completed on the claim form and signed by the client. (A) and (B) are incorrect. If the Particulars of Claim are served separately, then the claim form must be verified with a statement of truth. (If the Particulars of Claim are set out on the claim form, then there is a single statement of truth which relates to the Particulars of Claim.) (D) is incorrect as the statement of truth need not be signed by both the client and the solicitor. (E) is incorrect. The client, not the solicitor, is the most appropriate person to sign as the client has first-hand knowledge of the matters set out in the claim form.

Question 2

In a medical negligence case, the claimant issued proceedings on 21 February. The solicitors for the defendant have reviewed the claimant’s medical records and noticed an entry from just over three years ago related to the alleged medical malpractice that is the basis of the claim. The defendant wishes to raise limitation as an issue in the case.

How should the defendant’s solicitor bring the limitation issue to the attention of the court?

The defendant should allege in the defence that the claimant has issued proceedings outside the relevant limitation period.

The defendant’s solicitor should write to the claimant’s representative immediately, indicating that the matter is outside limitation and that they intend to raise it as an issue.

The defendant’s solicitor should make an immediate application to strike out the claim.

The defendant should allege in the acknowledgment of service that the claimant has issued outside the relevant limitation period.

Answer 2

A) When a claimant issues proceedings after the limitation period has expired, the appropriate course of action is for the defendant to allege in the defence that the claimant has issued after the relevant limitation period has expired. It is then incumbent upon the claimant to make an application to the court to dis-apply limitation. This procedure should be used here because the limitation period for medical malpractice is the same as the limitation period for personal injury - three years. (B) is incorrect. The defendant may mention the expiry of the period in the acknowledgment of service, but inclusion in the defence imposes the burden on the claimant to ensure that this matter is resolved as a preliminary issue in the case. (C) is incorrect because whilst this may be good practice, the allegation must be included in the defence. (D) is incorrect because the onus is on the claimant to apply to dis-apply limitation not upon the defendant to strike out.

Question 3

A solicitor is drafting the Particulars of Claim for damages arising from a road traffic accident. The solicitor is aware that the defendant has a conviction for careless driving stemming from this incident. The solicitor wishes to draw the court’s attention to the conviction, as they believe it is relevant to the issue of negligence.

How should the solicitor ensure that the conviction comes to the court’s attention?

The solicitor should include details of the conviction in the Particulars of Claim.

The solicitor should not include details of the conviction in the Particulars of Claim, as it is a collateral matter but should include the details in the claimant’s statement of evidence in due course.

The solicitor should not include details of the conviction in the Particulars of Claim, as it is a collateral matter, but should serve a notice to admit facts in due course, asking the defendant to admit the conviction.

The solicitor should write to the court asking the court to note on the court record that the defendant has a conviction.

The solicitor should not raise the conviction at all before trial, as it will be included in the contents of the police report and admissible in evidence in due course.

Answer 3

(A) If the claimant proposes to rely upon the conviction, it is important to refer to it in the Particulars of Claim. Failure to do so will lead to objections from the defendant when attempts are made to rely upon the conviction in due course. (B) is incorrect because including the conviction in the statement of evidence will not rectify the omission from the Particulars of Claim.

Question 4

A defendant in a professional negligence claim has failed to serve his expert’s report by the deadline specified in the directions order. This is the third time so far in the course of the proceedings that the defendant has missed a deadline. The claimant would like to prevent the defendant from using the expert’s report at trial.

How should the claimant proceed?

Make an application to strike out the defendant’s defence relating to the expert’s report.

Make an application for an unless order with respect to service of the report.

Make an application to impose costs, because a late filing of an expert’s report does not justify striking a defence under the overriding objective.

Make an application to debar the defendant from relying on the expert’s report.

Make an application to strike any defence the defendant has raised, because this was the third deadline the defendant has missed.

Answer 4

(B) The claimant should make an application for an unless order with respect to the expert’s report. If a party fails to comply with the directions order, the court usually will not impose a sanction unless the non-defaulting party makes an application for an unless order specifying the sanctions that may be imposed and the defaulting party fails to comply with the unless order. In that case, the court may strike out a defence or claim, impose costs, debar the defaulting party from relying on the evidence involved, and so on. But as there has been no unless order issued here, that is the first step the claimant must take in seeking to prevent the defendant from relying on the expert’s report. The other choices (A), (C, (D), and (E) all state possible sanctions, but they would generally be imposed only if the defendant fails to comply with an unless order. Additionally, note that (C) is not necessarily true. The court will consider all circumstances, and if striking the defence is warranted, it is a possible sanction

Question 5

A claimant has issued proceedings against a defendant for trespass. The claimant believes the defendant has no viable defence and so would like to apply for summary judgment to avoid prolonged litigation and costs.

What is the earliest time at which the claimant can apply for summary judgment?

As soon as the defendant files an acknowledgement of service.

As soon as the defendant files a defence.

Two days after the defendant files an acknowledgement of the claim.

Fourteen days after the defendant files a defence.

Fourteen days after the defendant files an acknowledgement of the claim.

Answer 5

(A) A claimant who wishes to make an application for summary judgment may do so as soon as the defendant acknowledges the claim. The claimant need not wait for the defendant to file a defence.

Question 6

A greengrocer initiates a breach of contract action against one of its fruit suppliers. The claim is allocated to the appropriate track, and the court orders the parties to file Directions Questionnaires.

Which of the following best describes the Directions Questionnaire?

A document asking the parties what timescales they believe are appropriate for trial preparation.

A document asking the parties what questions they have about the court’s directions.

A document that helps the court manage the case by requiring the parties to address issues such as whether experts will be required.

A document that encourages the parties to settle by forcing each party to answer certain questions.

A document from a jury asking the judge about items in the judge’s directions to the jury.

Answer 6

C) A Directions Questionnaire is a document that helps the court manage the case by requiring the parties to address certain issues, such as whether experts will be required. Other issues that must be addressed include whether the parties complied with pre-action protocols, track allocation and details of applications and directions already made as to disclosure and inspection, the names of witnesses and issues they will address, the estimated length of the trial, and the details of anticipated costs

Question 7

A new bride is unhappy with the photographs produced by her wedding photographer. She complains and asks for her money back. The photographer believes the photographs to be of good quality and believes that the bride is simply trying to avoid paying for them.

The bride issues proceedings, and the photographer intends to make an application for summary judgment because he believes litigation will be a waste of time and money given the quality of his photographs.
What must the photographer prove to obtain an order for summary judgment?

That the claimant has no real prospect of success and there is no other compelling reason why the case should be disposed of at trial.

That the defendant is more likely to succeed than not and there is no other compelling reason why the case should proceed.

Only that the claimant has no real prospect of success.

Answer 7

To obtain summary judgment, a party must show that the other party has no real prospect of success and that there is no other compelling reason why the case should be disposed of at trial.

Question 8

A factory worker was injured when a cutting machine sliced her hand. She made a claim against the manufacturer of the machine and included an application requesting an interim payment with a bundle of supporting evidence. The deemed date of service was 4 January. The court will hear the application on Tuesday, 24 January.

Whilst the defendant has admitted liability for breach of duty, they believe that the claimant was partially responsible for her own injuries in that she failed to wear suitable protective gloves. Had she done so, the extent of her injuries may have been minimal. Therefore, the defendant is not keen on making a payment at this stage of the proceedings.

What is the latest date on which the defendant may file its written evidence?

18 January, 14 days after the deemed date of service.

10 January, 14 days before the hearing.

17 January, seven days before the hearing

21 January, three days before the hearing.

Answer 8

(D) The defendant must ensure that they serve evidence in support of their objection at least seven days before the hearing. If not, the court is unlikely to consider it. As the period is seven days from the hearing, the choices indicating that time is measured from the date of service (that is, (A) and (B)) are incorrect. It should be noted the 14-day timescale in (C) is the minimum time before the hearing for claimant to serve evidence. And the three-day timescale in (E) is the minimum time before trial on which the claimant can serve a reply to the defendant’s evidence

Question 9

An electrician was injured when the equipment that was supplied by his employer malfunctioned whilst the electrician was re-wiring an office. The electrician issued proceedings against his employer that were deemed served on 1 June. The proceedings did not include the Particulars of Claim. The electrician’s solicitors served them later, with a deemed service date of 12 June.

How long does the employer have to acknowledge service?

14 days from the deemed date of service of the claim.

14 days from the deemed date of service of the Particulars of Claim.

21 days from the deemed date of service of the Particulars of Claim.

28 days from the deemed date of service of the claim.

28 days from the deemed date of service of the Particulars of Claim.

Answer 9

(B) A defendant must respond to a claim within 14 days of the deemed date of service of the Particulars of Claim. As time is measured from the deemed date of service of the Particulars, (A) and (D) would be incorrect as they are measuring from that date of service of the claim and here the claim did not include the Particulars. (D) is also incorrect for stating the wrong time period. (C) and (E) also state the wrong timescale. It should be noted that 28 days is the outside limit for filing a defence unless the defendant seeks an extension, as the defendant has 14 days in which to acknowledge service of the Particulars and can indicate that they require an additional 14 days to file a defence.

Question 10

Claimant makes a part 36 offer for 20,000, defendant rejects, and claimant recovers 25,000 at trial.

A The normal rules for costs apply
B The Claimant will have to pay the defendant’s costs on the standard basis from the date the relevant period expired.
C The defendant will have to pay the claimant’s costs on the standard basis from the date the relevant period expired.
D The defendant will have to pay enhanced interest from the date the acceptance expired; costs for the period will be assessed on an indemnity basis and additional damages may be imposed.

Answer 10

In a case in which the claimant beats its own offer, the claimant is entitled to interest on the entirety of the claim at an enhanced rate of up to 10% above base rate for the time after the acceptance period expired. Costs for this period will be assessed on an indemnity basis. Claimant might an additional amount of damages (generally 10% above the court award for amounts up to 500,000 and 5% for amounts above 500,000)

Question 11

An owner of a warehouse issued proceedings against an architect after a floor in the warehouse collapsed shortly after the building was put into use. In due course, the parties file Directions Questionnaires and agree that expert evidence is required. They both request permission to obtain and rely on their own expert’s report. The District Judge considers the Directions Questionnaires and makes an order for the parties to instruct a single joint expert.

Which of the following best describes the process that the parties must follow in relation to the instruction of a joint expert?

The claimant is entitled to choose the identity of the joint expert. They will prepare a letter of instruction and send it to the defendant for approval before despatching to the expert.

If the parties cannot agree on the identity of the expert, they are at liberty to obtain their own experts, and it will be up to the court to decide in due course whether a party acted reasonably.

The parties should try to agree the identity of the single joint expert, and if they cannot, the court will choose from a list provided by the parties.

The court will nominate a single joint expert from a list of experts maintained by the court.

Answer 11

C) The court will expect the parties to agree, but if they cannot, it will choose from a list of experts the parties provide. The parties will then jointly instruct the expert, and the expert will send their report to both parties. Questions can then be asked if appropriate.

Question 12

A woman has a road traffic accident with a lorry. The woman’s injuries are significant. She hires a solicitor to represent her. After reviewing the facts, the solicitor is concerned regarding the degree to which the accident might have been the woman’s fault. Therefore, before issuing proceedings, the solicitor instructs an accident reconstruction expert to assess the accident. The expert prepared a brief report for the solicitor, and the solicitor issued proceedings after reading the report.

Does the report fall under litigation privilege?

Yes, as there was some possibility that the case would proceed to litigation.
Yes, as there was a real likelihood of litigation at the time the report was created.
Yes, because the report was created before a party commenced litigation.
No, as the report was not created after a party commenced litigation.

Answer 12

C) The report falls under litigation privilege because there was a real likelihood of litigation when the report was created. Litigation privilege protects communications between a solicitor and a third party (for example, an expert or a barrister) sent for purposes of preparation for trial. The privilege will apply so long as it was sent when there was a real likelihood of litigation (a mere possibility is insufficient). Here, given the woman’s significant injuries, a claim was likely when the expert and the solicitor communicated. Thus, the privilege applies. (A) is incorrect as it incorrectly states that some possibility is sufficient to trigger the privilege.

Question 13

Five years ago, four friends agreed to set up a partnership to operate a car hand wash business. The partners agreed how to share profits and losses, but the partnership agreement did not contain any other terms. One of the partners announces that she has been offered a partnership in a car valeting business, for which she has been providing consultancy advice for the last three months without her partners’ knowledge. She wishes to leave the car wash business as soon as possible and become a partner in the car valeting business.

Which of the following statements best describes the position of the partner?

The partner automatically ceased to be a partner in the car wash business as soon as she started acting as a consultant for the car valeting business.

The other partners in the car wash business will have a remedy against the partner for acting as a consultant for the car valeting business without their consent.

Answer 13

(D) If a partner carries on any business in competition with that of the partnership without the consent of the other partners, the partner must account to the partnership for all profits they made in that business. Here, the partner has been working for a competing business and must account to the partnership for her secret profit.

Question 14

A few years ago, six friends formed a partnership to operate a florist’s shop. The partners agreed how to share profits and losses, but the partnership agreement did not contain any other terms. One partner would like to assign his interest in the firm and the remaining partners would like to make the assignee a partner.

Which of the following statements best describes the legal position?

The partner can assign his interest in the firm and the assignee can become a partner if a majority of the partners agree.

The partner can assign his interest in the firm, but the assignee does not become a partner unless all partners agree to make the assignee a partner.

Answer 14

(D) A partner’s right to a share of the profits is assignable, so (A) and (C) are incorrect. However, the assignee does not become a partner unless all the partners agree to make the assignee a partner. (B) is incorrect because the introduction of a new partner requires unanimous consent rather than consent of the majority. (E) is incorrect because the assignee does not automatically become a partner; that takes unanimous consent

Question 15

A partnership has three partners, one of whom would like to retire, provision for which is contained in the partnership agreement. The retiring partner wants to ensure that after his retirement, he will have no liability to the partnership for partnership debts incurred after his retirement.

How can he ensure that his liability comes to an end?

Removal of his name from all partnership stationery and the website.

Give notice to existing customers of his retirement and publish notice in the London Gazette.

It is only debts incurred before his retirement for which he may still be potentially liable; he does not need to concern himself with post-retirement debts.

Answer 15

Give notice to existing customers of his retirement and publish notice in the London Gazette.

Question 16

Four university friends formed a partnership to sell games. They have agreed to share profits and losses equally. A supplier is pursuing the partnership for an unpaid debt.

Which of the following statements best describes whether the partners are personally liable for the debt?

Each partner is personally liable for 25% of the debt, and the supplier must pursue each partner
individually for their share of the debt.

Each partner is personally liable for the full amount of the debt, and the supplier may pursue any or all of the partners for the debt.

Answer 16

E) Partners have unlimited personal liability for the debts of the partnership. Therefore, (D) is incorrect. The liability is joint; that is, a creditor can choose to pursue one or all of the partners on a partnership debt (although the creditor can receive full payment only once). Because the partners share the profits and losses equally, each individual partner would be responsible internally for 25% of the debt. This means that any partner who pays the full amount of the debt can seek reimbursement from the other partners for the remaining 75%. However, the fact that a partner can seek reimbursement from the other partners does not affect the partner’s direct liability to the creditor for the full amount

Question 17

Three friends set up a business specialising in ethical jewellery as a partnership 10 years ago. On 1 August, one partner retires and is replaced by a new partner that same day. The partnership notified existing creditors of the change on 3 August.

The partnership entered into a contract to buy diamonds from an existing creditor on 2 August and a contract to buy emeralds from a different existing creditor on 5 August.

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

The retiring partner will be liable for the diamond debt only; the new partner will be liable for the emerald debt only.

The retiring partner will be liable for the diamond debt only and the new partner will be liable for both debts.

The retiring partner will be liable for both debts; the new partner will be liable for the emerald debt only.

Answer 17

(D) The retiring partner will be liable for the diamond debt only and the new partner will be liable for both debts. Every partner is liable for debts of the partnership incurred whilst the partner was a partner. An outgoing partner will be liable for debts incurred by the partnership after they leave unless they give notice of their withdrawal. Existing creditors must be given actual notice and other potential creditors can be given notice by publication. Here, as the actual notice was received on 3 August, the retiring partner is liable for debts incurred before that date.

Question 18

One of the partners in a partnership contracts with a supplier, telling the supplier that she has express authority to enter into the contract. Subsequently the partnership fails to honour its contractual obligations. The other partners claim they had no knowledge of the partner’s actions and she had no authority to enter into the contract. The supplier wishes to know if they are able to sue the partnership.

Which of the following statements regarding express actual authority of a partner is true?

If the partnership agreement authorises a partner to act, no further action is required for a partner to act.
A partner has actual authority to act on behalf of the partnership by virtue of being a partner.
A partner has actual authority to act on behalf of the partnership by virtue of a third party’s perception of what authority a partner should have.

Answer 18

(A) A partnership will be bound by an act of a partner if the partner has express actual authority. One way that express actual authority can be granted is in the partnership agreement. If the agreement authorises a partner to act, no further action is required for a partner to act. (C) is incorrect because a partner does not have express actual authority to act on behalf of the partnership simply by virtue of being a partner (although a partner may have implied actual authority or apparent authority to carry on business apparently within the scope of partnership business by virtue of being a partner). (E) is incorrect because this is a definition of apparent authority, not express actual authority

Question 19

A cyclist suffers multiple injuries following a collision with a car. The solicitors for the cyclist write to the driver’s insurers indicating that they are intending to bring a claim. They subsequently send a letter of claim to the driver, with a copy to his insurers, stating that they will commence formal legal proceedings unless they receive a formal admission of liability within 21 days.

The driver’s insurers respond 14 days later. Their response states that they are investigating the claim and will come back to the cyclist’s solicitors as soon as possible with confirmation of whether liability can be admitted.

How long do the insurers have to investigate the claim?

14 days
21 days
One month
Two months
Three months

Answer 19

(E) Three months. Under the Personal Injury Protocol, a claimant must send a letter of claim to the defendant, giving the defendant 21 days to respond. If the defendant responds to the letter within 21 days, the claimant must then give the defendant three months to investigate the claim.

Question 20

A claim form marked “Particulars of Claim to follow” is issued on 15 August. The claim form is deemed served on 5 December. The Particulars of Claim was then served on 18 December.

No, as a claimant must serve the Particulars of Claim within four months of service of the issuance of proceedings.
Yes, as a claimant must serve the Particulars of Claim within 14 days of service of the Claim Form.

Answer 20

(A) Following service of the claim form, a claimant has 14 days to serve the Particulars of Claim. However, service must take place within four months of the issuance of proceedings. Therefore, if allowing 14 days after service of the claim form would take the date beyond the four months allowed for service of the claim form, the claimant must serve before the four months expires. That is what happened here. Issuance here was on 15 August, giving the claimant an outermost time of 15 December to serve the Particulars of Claim. Service of the claim form was on 5 December, and allowing the 14 days for service would take the claimant past the outermost period. Thus, service of the Particulars of Claim was late

Question 21

A small business based in the UK has a contractual dispute with a larger company based in Paris. The small business wants to commence proceedings against the larger French company to recover a debt. The contract signed by both parties states that the applicable laws of England and Wales will govern any dispute between the parties and that any disputes will be exclusively determined by the courts of England and Wales. The business issues the proceedings and now must arrange to serve upon the company at their address in Paris.

How long does the business have to serve the proceedings upon the French company?

4 months
6 months
9months
12 months
2 years

Answer 21

(B) For service outside the jurisdiction, the claimant has an additional two months over and above what would be available if the company had a registered office in the UK.

Question 22

A client wishes to commence proceedings against their former solicitors for negligent advice in respect of various trust funds of which they are a beneficiary. Their solicitors estimate the value of the claim at £250,000. The client is based in Manchester and is severely disabled, and her former solicitors are based in London.
In which court should the client’s solicitors issue the claim?

The High Court of Justice, Manchester District Registry, Queen’s Bench Division.

The High Court of Justice, Manchester District Registry, Chancery Division.

Answer 22

(D) The claim should be issued in the High Court of Justice, Manchester District Registry, Chancery Division. Generally, claims exceeding £100,000 are issued in the High Court. The High Court has district registries in most large towns and cities, and the claimant should indicate on their claim form the district out of which they wish the claim to issue. As the client is based in Manchester and is severely disabled, Manchester would be the best registry. And the Chancery Division of the High Court is the division that handles equity and trusts.

Question 23

A sole trader brings a claim against a supplier for breach of contract. The supplier indicates that they are happy for service of the claim form to be on their solicitor (who the claimant has been corresponding with pre-issue). The solicitor has not confirmed this directly to the claimant. The claimant sends the claim form to the nominated solicitor two days before expiry of the claim form. The solicitor returns the claim form a week later saying they have no authority to accept service of proceedings.

Has the claimant validly served the claim form?

No, because the solicitor did not give express consent to accept service.

Yes, because the defendant gave the nomination to accept service.

No, as the claimant is required to serve claim forms directly on the defendant.

No, as the claimant was required to check with the solicitors to ensure that they were prepared to accept service.

Answer 23

(B) Service is good. The claimant can rely on the nomination from the defendant personally. (A) is incorrect because there is no need for the solicitors to give express consent

Question 24

A woman is suing a restaurant owner for injuries she sustained when she slipped on sauce that a waiter had accidentally spilt on the floor of the restaurant. Attempts at alternative dispute resolution failed because the parties could not agree on the extent to which the woman’s own negligence contributed to her injuries.

In valuing the woman’s claim for purposes of completing the claim form, which of the following will be considered?

Interest and the woman’s damage estimate

Interest, costs, the woman’s damage estimate,
contributory negligence

The woman’s damage estimates only

Cost and the woman’s damage estimates only

Answer 24

(D) When valuing a damages claim (that is, a claim for an unspecified amount) for purposes of the claim form, the claimant should disregard interest, costs, contributory negligence, and counterclaims. Therefore, the only item among the choices that should be considered is the woman’s damages estimate. It follows that none of the other choices is correct.

Question 25

On 2 January 2020, officers of a luxury hotel signed a contract with an IT company for the installation of a bespoke booking system. The system was launched on 11 March 2020 when the work was completed. The hotel’s staff first began using the system immediately but soon noticed that it was malfunctioning. The hotel notified the IT company of the problems on 14 April 2020. The hotel was not able to quantify its losses until 17 July 2020.

When will the limitation period for the above claim expire?

2 Jan 2023
2 Jan 2026
11 Mar 2026
14 Apr 2026
17 Jul 2023

Answer 25

C) The company has six years from the date of breach of the contract in which to make a claim. The date of breach is the date that the defective contractual performance was given (11 March 2020 - when the work was completed). Therefore, the hotel has until 11 March 2026. (A) is incorrect as the limitation period for contract claims is six, not three, years measured from the date of breach rather than the date the contract as entered. (B) is incorrect for a similar reason - the limitation period does not begin on the signing of a contract

Question 26

A claimant has issued proceedings against a defendant for breach of contract. After being served with the Particulars of Claim, the defendant believes there is no case to answer. The defendant therefore immediately acknowledges the claim and makes an application to strike out the claim. Three weeks later, whilst the defendant is waiting for a date for the application to be heard, the claimant applies for and obtains judgment in default of defence. The defendant then raises objection with the court and asks for judgment to be set aside.

Is the court likely to set aside the default judgment?

No, because the defendant failed to file a defence within 14 days of the acknowledgement.

No, because it is unclear whether the defendant has a real prospect of successfully defending the claim.

No, because the defendant should have applied for summary judgment.

Yes, because the court has not yet considered the defendant’s application to strike.

Yes, because the defendant has a real prospect of defending the claim.

Answer 26

(E) The court must set aside the judgment because it has not yet considered the defendant’s application to strike out. A defendant must respond to a claim within 14 days after deemed service of the Particulars of Claim. The response can be either an admission, the service of a defence, or an acknowledgment of service with an indication that a defence will be filed. The defence must then be filed within 14 days unless the defendant then applies for summary judgment or to strike the claim. In that case, a defence need not be filed until the application is resolved. If a default judgment is granted before the application to strike or for summary judgment is heard, the court must set aside the default judgment.

Question 27

A claimant is suing a defendant for breach of contract. The directions order in the case requires the parties to serve their disclosure list by 30 April. The defendant serves their list on 30 April, but the claimant has failed to do so. It is now 7 May.

What should the defendant do?

The defendant need do nothing, as the court will sanction the claimant without any action by the claimant.

The defendant should make an application to the court for an unless order in respect of service of the disclosure list.

The defendant should write to the court stating that the claimant is in default of the directions order.

The defendant should apply for summary judgment on the basis that, with no documents in support, the claimant’s claim must fail.

Answer 27

(B) At this point, it would be appropriate to make an application for an unless order, which specifies the penalty that will be imposed unless the party complies with the direction. The claimant is in default, but rather than allowing the claimant to serve late and raise this later in the case or at trial, it is sensible to make an application to enforce compliance, knowing that failure to comply with any order made may lead to the claim being dismissed

Question 28

A patient has initiated a claim against their doctor for professional negligence. The patient believes that they will need to rely on evidence from experts in two separate disciplines to make their case. However, the court issues a directions order that allows for only one expert.

May the patient apply for a variation in the directions?

Yes, by making an application to vary the directions within 14 days of issuance of the order.

Yes, by obtaining the agreement of the defendant doctor within 14 days of issuance of the order and reporting the agreement to the court.

Yes, by making an application to vary the directions within 14 days after service of the medical reports.

No, as the court would have already considered the need for two experts when deciding what is proportional under the overriding objective.

Answer 28

(A) The patient may seek an order to vary the directions order, but an application is required. It may or may not be successful. The court may believe that the directions are suitable for the claim to be resolved fairly, expeditiously and justly, but it would be appropriate for the patient to make an application to vary, as they believe that the direction has compromised their position.

Question 29

A shopper is pursuing a claim for personal injury. The shopper contends that they were walking down an aisle one evening when they slipped on a puddle of water. The claim is against the store owner and a member of the store’s staff, who allegedly spilt the water.

After the claim issued, the shopper discovered that the staff member had mopped the puddle, but the store manager had purchased a mop that was not designed for use in commercial applications and so it left the floor slick. Therefore, the claimant makes an application to add the store manager to the claim. In response, the staff member makes an application to be removed from the claim. Additionally, the store owner died shortly after the claim issued. So the shopper also makes an application to substitute the owner’s personal representative for the owner.

Which of the following is correct regarding the applications for addition, removal, and substitution?

The application to add the store manager will be granted as a matter of right, provided the limitation period has not expired.

The application to substitute the owner’s personal representative will be granted if the court finds it desirable, provided the limitation period has not expired.

The application to remove the staff member will be granted if the court finds it desirable to remove them, regardless of the limitation period.

The application to add the store manager will be granted as a matter of right regardless of the limitation period.

The application to substitute the owner’s personal representative will be granted as a matter of right, provided the limitation period has not expired.

Answer 29

(C) The application to remove the staff member will be granted if the court finds it desirable to remove them, regardless of the limitation period. The court can order a person to cease to be a party if it is not desirable for them to be a party in the proceedings, and such removal does not depend on whether the limitation period has expired. (A) is incorrect. An application to add a party will not be granted as a matter of right. The application will be granted only if the court finds it is desirable to do so or that there is an issue between the party to be added and an existing party that is connected to the existing case. (B) is incorrect because when a party dies, the court may grant an application to substitute the decedent’s personal representative even after the limitation period has expired. (D) is incorrect both because the application will not be granted as a matter of right and because an application to add a party cannot be granted after the limitation period has expired. (E) is incorrect because an application to substitute a personal representative for a deceased person may be granted after the limitation period has expired

Question 30

A gardener makes a claim for payment of an outstanding bill for supply of gardening services to a business in his town. The claim is for a specified sum plus accrued interest and the applicable fixed costs. The defendant files a response admitting the whole claim.

What will the court now do?

Issue a judgment order to include accrued interest and fixed costs, which the defendant is required to pay.

Send a further form out to the defendant asking whether they need time to pay.

Send a further form out to the defendant asking whether they want to pay in instalments and if so, asking the defendant to provide details of assets, income, and outgoings.

Answer 30

(B) The court will issue a judgment order. If the defendant pays the judgment within 14 days, they can avoid the court recording the judgment in the court register of judgments. (A) is incorrect because the court does not need a hearing to determine when and how the judgment is paid. (C) is incorrect. The defendant should indicate on the response form if they need time to pay

Question 31

An estate agency is suing a client for breach of contract. The agency commences proceedings on 1 March. The agency makes a Part 36 offer of £50,000, inclusive of interest. That offer is deemed served on 1 July 2020 and provides for a relevant period of 21 days. The client does not accept the offer. At trial, the judge awards the agency damages of £50,000, inclusive of interest.

What costs order, if any, would you expect the trial judge to make as to the offer to settle?

The judge will not make any order as to the offer to settle.

The client must pay all of the agency’s costs on an indemnity basis.

The client must pay all of the agency’s costs on the standard basis up until 1 July and must pay all of the agency’s costs on an indemnity basis thereafter.

The client must pay all of the agency’s costs on the standard basis up until 22 July and must pay all of the agency’s costs on an indemnity basis thereafter.

Answer 31

The client must pay all of the agency’s costs on the standard basis up until 22 July and must pay all of the agency’s costs on an indemnity basis thereafter.

Question 32

A claimant in a case for breach of contract made a £50,000 Part 36 offer on 16 May. The defendant rejected the offer, and the case went to trial on 18 November later the same year. At trial, the judge gave judgment for the claimant in the sum of £60,000.

What effect, if any, did the defendant’s rejection of the claimant’s offer have in respect of damages, costs, and/or interest that the judge may impose?

The claimant is entitled to the costs of the action in their entirety on an indemnity basis plus interest on the entirety of the claim at an enhanced rate of up to 10%.

The claimant is entitled to the costs of the action in their entirety on an indemnity basis plus not more than 10% additional damages.

The claimant is entitled to costs of the action on an indemnity basis from the date the offer expired plus an enhanced rate of interest on damages, which will apply from the date of the breach.

The claimant is entitled to costs of the action on an indemnity basis from the date the offer expired plus up to a 25% uplift on damages.

The claimant is entitled to costs of the action on an indemnity basis with an enhanced rate of up to 10% above the base rate from the date the offer expired plus not more than 10% additional damages.

Answer 32

) If a claimant makes a Part 36 offer in a case seeking damages, the defendant rejects the offer, and the claimant secures a judgment more favourable than the offer (which are the facts of this question), unless it is unjust, the court may for the period after the time the offer expired: (1) award interest on the entirety of the claim at an enhanced rate of up to 10% above the base rate and (2) award costs on an indemnity basis with an enhanced interest rate of up to 10% above the base rate. The court may also (3) impose additional damages of not more than 10%.

Question 33

A claimant obtains judgment against a defendant for £50,000 and is looking to apply for a charging order against a building which the defendant and his business partner own as joint tenants.
Which of the following statements best describes the effect of the charging order against the building?

It will take effect as a legal mortgage, but without the power of sale.

It will take effect as a legal mortgage, but with an automatic power of sale.

It will take effect by providing the claimant with notice if the defendant or his business partner intend to sell the property.

It will take effect as an equitable mortgage with an automatic power of sale.

It will take effect as an equitable mortgage, but the claimant must apply for an order of sale to force a sale of the property.

Answer 33

(E) A charging order ranks as an equitable mortgage. That is, it gives the creditor the right to apply for an order for sale, even if the land is in joint ownership.

Question 34

A defendant in a road traffic accident case is unhappy with the fact they lost at trial. The defendant believes the judge made errors in making findings of fact for which there was no admissible evidence.

Which of the following describes a valid ground on which the defendant could appeal if granted permission?

The defendant had insufficient opportunity to present their case.

The decision is wrong in fact, law, or the exercise of the court’s discretion.

The decision is unjust because of a serious procedural or other irregularity in the proceedings.

The defendant in a road traffic accident case is automatically entitled to a rehearing of the evidence.

The judgment is unjust and prejudicial to the defendant.

Answer 34

(B) Since the defendant believes that the judge has misinterpreted the evidence and facts of the case, the grounds for appeal is that the decision is wrong in fact, law, or the exercise of the court’s discretion.

Question 35

A company issued 1,000 £1 ordinary shares and 2,000 £100 shares with a 5% noncumulative preference. The company approves distribution of a £100,000 dividend.

What is the maximum amount that may be distributed to the ordinary shareholders?

£100,000
£90,000
£50,000
£33,333
£30,000

Answer 35

(B) If a company has preference shares, the preference must be paid before any dividend may be distributed to the ordinary shareholders. Here, the company has 2,000 £100 shares with a 5% preference. That means that each of the 2,000 preference shares is entitled to receive 5% of £100 before the company may make a distribution to the ordinary shareholders. So, the first £10,000 (£5 x 2,000 shares) must be distributed to the preference share owners, which leaves £90,000 that may be distributed to the ordinary shareholders.

Question 36

A director is defined by the Companies Act 2006 as: “any person occupying the position of director, by whatever name called”. It is therefore important to consider an individual’s function rather than their title, so this definition also covers shadow directors.
How could a shadow director be best described?

A director with whose directions or instructions the directors of the company are accustomed to act.

A director who has not been formally appointed and registered, but carries out all the duties of and behaves as a director.

Answer 36

(A) A shadow director is not a properly appointed director, but a person in accordance with whose directions or instructions the directors of the company are accustomed to act. A shadow director is typically an individual who still wants to exert some control over a company, but in a way that evades any potential responsibility or liability connected with the office of a director, for example, because they are a disqualified director. (B) is incorrect as this defines a de facto director

Question 37

A company has adopted the Companies (Model Articles) Regulations 2008 (unamended) as its articles of association. It has three directors. A new director is to be appointed and awarded a contract terminable on six months’ notice.

Which of the following best describes the procedure required to appoint a director and award a service contract?

The board can appoint the new director and award the service contract.

The board can appoint the director and award the service contract, but only after the members have approved the service contract by ordinary resolution.

The board can appoint the director and award the service contract, but only after the members have approved the service contract by special resolution.

Answer 37

(A) In a company which has the Model Articles, a director can be appointed by either the board or by an ordinary resolution of the members. Service contracts are awarded by the board; however, if the term of a service contract is longer than two years, it must first be approved by ordinary resolution of the members. Here the contract can be terminated on six months’ notice and so it does not commit the company to a term any longer than six months. Therefore, members’ approval is not required, so the new director can be appointed by the board and the board can award the service contract without members’ approval.

Question 38

The board of directors of a public limited company wish to call an annual general meeting of the shareholders. One of the items on the agenda will be a special resolution to alter the articles of association of the company.
What is the notice period they are required to give the shareholders?

21 days
14 days
28 days
7 days

Answer 38

(A) The statutory notice period required to be given to shareholders to call an annual general meeting is 21 days, whether the resolutions to be considered are ordinary or special resolutions

Question 39

A junior solicitor has been assisting a partner in relation to a client’s purchase of a villa in Spain. The partner told the junior solicitor that he suspected that the client may have been using proceeds from criminal activity to fund the purchase. The partner also mentioned that he made a suspicious activity report about the client to the firm’s Money Laundering Reporting Officer (‘MLRO’) in both their names and the MLRO is currently investigating the report. The junior solicitor is worried about being implicated in the money laundering activity and shreds some documents which she thinks are relevant to the case.

Which of the following best describes whether the junior solicitor may have committed an offence under the Proceeds of Crime Act 2002 (‘POCA’)?

The junior solicitor has not committed an offence as the partner has made a suspicious activity report to the MLRO.

The junior solicitor may have committed the offence of prejudicing an investigation and no defence is available.

The junior solicitor has not committed the offence of prejudicing an investigation because her intention was only to conceal her involvement.

The junior solicitor may have committed the offence of concealing.

The junior solicitor may have committed the offence of failure to report.

Answer 39

The junior solicitor may have committed the offence of prejudicing an investigation and no defence is available.

Question 40

Which of the following provides the best way for the local Conservative Party to trigger a by-election?

Obtaining consent from 10% of the local council to trigger a by-election.

Obtaining consent from 10% of the electorate in the constituency through a recall petition.

Answer 40

E) To trigger a by-election, the local Conservative Party should obtain the consent of 10% of the electorate evidenced by their signing a recall petition. Under the Recall of MPs Act 2015, if an MP has been suspended for more than 10 days, this triggers a recall petition in the constituency of the MP. If more than 10% of the electorate in that constituency sign the petition, then a by-election is held.

Question 41

A group of MPs opposed to the Human Rights Act 1998 have discovered a provision of retained EU law which contains references to the EU institutions that no longer apply now that the UK has left the EU. Knowing that the power to deal with deficiencies in retained EU law gives ministers the power to make any provision that an Act of Parliament could make, these MPs have suggested that the government should use these powers to repeal the Human Rights Act 1998. The government has explained that the power to deal with deficiencies cannot be used in this way.

Which of the following best explains why the proposal is illegal?

There is a deficiency in retained EU law, but the powers cannot be used to repeal the Human Rights Act 1998.

There is a deficiency in retained EU law, but the powers must be used in consultation with the Scottish Parliament, who do not agree to the repeal of the Human Rights Act 1998.

There is a deficiency in retained EU law, but because there is no evidence that it has caused any problem, the power to address the deficiency does not arise.

Answer 41

(B) Although there is a deficiency in retained EU law, the government cannot address the deficiency by repealing the Human Rights Act 1998. Obsolete references to the EU institutions in retained EU law are an example of a deficiency in retained EU law which gives rise to the power of the government to address the deficiency under the European Union (Withdrawal) Act 2018. However, the 2018 Act is clear that this power cannot be used to amend or repeal the Human Rights Act 1998.

Question 42

A solicitor meets a client who tells the solicitor that he is not computer literate and does not use his email account. Despite being aware of this, the solicitor sends the client care letter by email only. The client care letter contains costs information. At the end of the matter, the client complains to the firm that he had received no costs information.

Which statement best describes whether the client’s complaint is likely to succeed?

The client’s complaint is not likely to succeed
because the firm sent a client care letter at the outset of the matter.

The client’s complaint is likely to succeed because client care letters must be sent by post and email.

The client’s complaint is likely to succeed because the firm should have provided the client care letter in a form appropriate to this client’s needs and circumstances.

Answer 42

(E) The firm was aware of the client’s circumstances and should have acted accordingly and agreed with the client how the client care letter would be sent. (A) is incorrect because the firm must meet the needs of each particular client; it is a subjective test.

Question 43

A barrister has been asked to speak to secondary school students about how statutes are interpreted in the courts. The case of Muir v Keay (1875) is used as an example. The statute in that case stated that all houses that are kept open at night for ‘public refreshment, resort and entertainment’ had to be licensed. The defendant argued that his cafe did not need a licence because he did not provide entertainment. The court held that ‘entertainment’ did not mean musical entertainment but the reception and accommodation of people, so the defendant was guilty of operating the café without a license.
What rule of language has been used here?

Noscitur a sociis.

Ejusdem generis.

Expressio unius est exlusio alterius.

Answer 43

(A) Under noscitur a sociis if a case is based on something with unclear or ambiguous words (as in a statute or contract) their meaning is determined by considering the words with which it is associated in the context. Here, the court must interpret the meaning of the word ‘entertainment’. It was used in the context of public refreshment and resort and, thus, should be interpreted to mean something related to those two terms. (D) is incorrect, this rule of interpretation is used to interpret general words that follow two or more specific words (the general word will be limited to items like the specific words). Refreshment and resort are not specific words related to entertainment.

Question 44

A solicitor has been asked by a client to look at the client’s portfolio of shares because the client would like to make a large donation to a local charity. The client asks the solicitor to decide which shares the client should sell in order to fund the donation. The client is happy to take the necessary steps to sell the shares once the decision is made. Neither the solicitor nor her firm is authorised by the Financial Conduct Authority to carry on a ‘regulated activity’ as defined in the Financial Services and Markets Act 2000 (‘FSMA’) and related secondary legislation.
Which of the following best describes the activity specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, which the solicitor will be carrying out?

Advising
Arranging
Dealing as Agent
Managing
Safeguarding

Answer 44

D) Under the general prohibition of FSMA, a solicitor may not carry on regulated activity in the UK unless they are authorised or exempt from authorisation. A regulated activity is defined as an activity specified in the Regulated Activities Order relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply. The specified activities might be remembered with the mnemonic device ‘ADAMS’. Activities = Advising, Dealing as an agent, Arranging, Managing, and Safeguarding. Managing involves managing assets belonging to another person in circumstances which involve the exercise of discretion. Here, the solicitor has been asked to look at the client’s portfolio and exercise discretion in deciding which assets the client should sell, which is the specified activity of managing. (A) is incorrect because the solicitor is not advising, that is, giving advice to the client which the client will then act upon. The solicitor herself will be making a decision. (B) is incorrect because the solicitor will not be making arrangements. The client will be selling the selected shares themselves. (C) is incorrect because the solicitor will not be dealing as agent, that is, selling the shares as agent on the client’s behalf. (E) is incorrect because the solicitor will not be safeguarding, that is, administering or safeguarding (looking after) the shares. This specified activity is more relevant to probate and trust work.

Question 45

bringing a claim for breach of contract. The solicitor believes the claimant has an arguable case and turns her attention to funding. The firm is not part of the Legal Aid franchise scheme.
Which of the following statements best describes the position on funding?

The solicitor will need to know whether the client is a member of a union or has any before the event insurance policies available. If none of these apply,
the solicitor is likely to recommend a funding arrangement such as a conditional fee agreement.

The solicitor will need to ascertain how the claimant wishes to pay for the claim. If the client is happy to pay the solicitor on an ongoing basis, there is no need to investigate the availability of other forms of funding.

The solicitor will ask for £1,000 ‘on account’ of costs at the initial meeting. This will cover any initial expenses that the solicitor must incur whilst she investigates the possible funding options.

Answer 45

(B) It is important that the solicitor fully investigate the possibility of other funding methods before advising the client on the most suitable option. A solicitor should check to see if a client has before the event insurance to cover legal costs, or whether they are entitled to legal expenses cover as part of a union membership. Failure to do so would constitute a dereliction of duty. This applies however unlikely it may be that existing insurance will cover the incident in question. If none of these forms of insurance or cover are available, the solicitor is likely to recommend a funding arrangement such as a conditional fee agreement. (A) is incorrect because it is irrelevant that the client is happy to pay the solicitor on an ongoing basis. The solicitor must still properly investigate other potential funding mechanisms before proceeding. (C) is incorrect because Legal Aid will not be available for a breach of contract case. Civil Legal Aid is limited to certain specific situations, such as housing disputes, family, or debt issues, and is not available for contract or tort claims. (D) is incorrect because it would be unusual for a solicitor to request this sum at an initial meeting before any funding investigation has taken place. (E) is incorrect because a damages based agreement may not be best for the client. The solicitor must investigate funding options first before advising the client on the best option

Question 46

A solicitor is advising a client company on the preparation of standard terms and conditions of employment for the company’s employees. As part of that process, the solicitor arranges for the client to speak to an insurance broker who advises the company on purchasing insurance policies to cover unfair dismissal and related employment claims. Neither the solicitor nor her firm is authorised by the Financial Conduct Authority to carry on a “regulated activity” as defined in the Financial Services and Markets Act 2000 and related secondary legislation. The insurance broker is authorised by the Financial Conduct Authority.

No, because there is no specified investment.
No, because the solicitor is not selling a specified investment to the client.
No, because the solicitor can rely on the introducing exclusion.
Yes, because the introducing exclusion is not available for insurance policies.

Answer 46

(E) The solicitor has breached the general prohibition against carrying on a regulated activity because the introducing exclusion is not available for insurance policies. A regulated activity is defined as an activity specified in the Regulated Activities Order relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply. Here, the solicitor has carried on a specified activity (arranging, that is, making arrangements for the client to receive advice on purchasing insurance policies) in relation to a specified activity (insurance contracts). Under the introducing exclusion, a solicitor can introduce a client to a person authorised by the Financial Conduct Authority in order for the client to receive advice. While the solicitor has introduced the client to an insurance broker authorised by the Financial Conduct Authority, the introducing exclusion is not available for insurance policies. Thus, the solicitor cannot rely on this exclusion and is therefore carrying on a regulated activity in breach of the general prohibition.

Question 47

A freelance UK solicitor has undertaken conveyancing work for a client who is buying a block of flats. The solicitor believes the price the client has offered is unreasonably high. The client doesn’t seem bothered about paying the price despite the solicitor’s advice. The solicitor suspects the client is attempting to launder his money.
Which of the following best describes what the solicitor should do?

Reveal his suspicions to the client and refuse the engagement if the client admits to this intention.
Ignore his suspicions because the transaction is privileged.
Report his suspicions to a Money Laundering Reporting Officer.
Report his suspicions to the National Crime Agency.

Answer 47

E) The solicitor should report his suspicions to the National Crime Agency. Solicitors have obligations under the Proceeds of Crime Act 2002 (‘POCA’) to make disclosures of suspicions of money laundering. The National Crime Agency is the entity charged with enforcement of POCA. In a firm, the duty is to report to the firm’s Money Laundering Reporting Officer (‘MLRO’). However, as this is a freelance solicitor not working in a firm, the obligation is to report suspicions to the relevant authority – the National Crime Agency.

Question 48

A man recently purchased a house. He did not realise at the time of the purchase that the house is near a major airport and he objects to the number of commercial aeroplanes flying overhead. The man believes that he can bring a claim for trespass of his airspace against the company that owns the airport.
Can the man successfully bring such a claim?

Yes, because the definition of ‘land’ includes airspace above the land up to the heavens.

No, because he cannot prove that he has suffered sufficient loss.

No, because no action shall lie in respect of trespass by reason of the flight of an aircraft over the property.
Yes, because, by statute, an action shall lie in respect of trespass by reason of the flight of an aircraft over property.

Answer 48

C) The man c(annot successfully bring a claim in trespass because no action shall lie in respect of trespass by reason of the flight of an aircraft over the property. In theory, land extends ‘to the heavens’ and to the centre of the earth, which means that infringing on another’s airspace is a trespass to land. However, in practice, such rights are limited. A landowner is allowed rights in airspace only to such height as is necessary for the ordinary use and enjoyment of the land and the structures on it. Thus, a landowner cannot object to the passage of aircraft over his land during normal flight, as is the case here

Question 49

A registered proprietor of a freehold estate borrows money from a bank. The bank registers a mortgage on the property in the charges register. The mortgage appears as a first legal charge. The registered owner also just concluded a deed of easement containing a right-of-way which benefits their land. The owner perfects the deed of easement by registration in the property register for his land.

Which of the following best describes the two registered interests?

Concurrent interests.
Commonhold interests.
Equitable estates.
Overriding interests.

Answer 49

(B) As the two interests are over the same piece of land and exist alongside each other, they are best described as concurrent interests.

Question 50

A landowner is selling land which has an unregistered title.

What is the minimum period of ownership that the landowner must show to establish good title?

Answer 50

C) The minimum period of ownership that a seller of land with unregistered title must demonstrate is 15 years.