M VI Flashcards

1
Q

The occupier of a large country estate organises a craft fair inside a large tent erected on an open field on the estate. To raise funds for the estate, exhibitors at the fair are charged a fee for a stall. The public are allowed free entry to shop at the fair. The floor of the tent is covered with rush matting for visitors to walk on. After the first few shoppers have entered, it becomes clear that the rush matting is curling up at the edges and is causing a tripping hazard. So, the occupier puts up a large sign at the entrance to the tent saying: ‘please take care, uneven floor’. Unfortunately, a lady visiting the craft fair to shop trips on the curled edge of the matting and is injured.
In an action by the lady against the occupier under the Occupiers’ Liability Act 1957 (‘the Act’), which of the following is correct?

The occupier is not likely to be liable to the lady because the sign constituted a warning to persons using the premises and appears to have been sufficient to discharge the duty of care owed to them.

The occupier is not likely to be liable to the lady because a tent erected in an open field is not a premises within the meaning of the Act, so no duty of care arises under the Act.

The occupier is not likely to be liable to the lady because entry for the public was free, so no duty of care arises under the Act.

The occupier is likely to be liable to the lady because liability for death or personal injury cannot be excluded.

The occupier is likely to be liable to the lady because he owed her a duty of care under the Act, and the breach of this duty caused the injury which she suffered.

A

E) The occupier is likely to be liable. Under the Occupiers’ Liability Act 1957 (‘the Act’) the occupier of premises owes a duty to lawful visitors to take reasonable care to see that they will be reasonably safe in using the premises for the purposes for which they are invited or permitted to be there. So, the occupier here owed the lady a duty of care. On the facts, he appears to have failed to take such reasonable care. He became aware that the rush matting was causing a tripping hazard but did not do anything to make it safe. While the notice (‘please take care, uneven floor’) is a warning of the danger, the Act provides that a warning of the danger does not, without more, discharge the occupier’s duty unless it enables the visitor to be reasonably safe. On the facts, the notice did not enable visitors to be reasonably safe because shoppers distracted by the displays are not likely to notice the curled edge of the matting. So, the occupier likely was in breach of his duty. Such breach clearly caused the damage suffered. (A) is not correct because, on the facts, the warning notice was not sufficient to discharge the occupier’s duty of care to the lady, as explained above. (B) is not correct. The definition of premises under the Act extends to cover any fixed or moveable structure, and so would cover a tent erected on the land. So, a duty of care does arise under the Act in respect of damage caused by the state of the premises, which would include the state of the flooring of the tent. (C) is not correct. The duty under the Act is owed by an occupier to his lawful visitors. A lawful visitor is a person whom the occupier has invited or permitted to enter the premises. Payment for entry is not a condition of being a lawful visitor. Therefore, the occupier did owe a duty of care to the lady. (D) is not correct even though it states the correct result. It is true that liability for death or personal injury caused by a breach of the occupier’s duty under the Act cannot be excluded. However, the notice (‘please take care, uneven floor’) does not purport to exclude liability. Rather, it is simply a warning, and not adequate to discharge the occupier’s duty of care, as discussed above.

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2
Q

An article in a newspaper falsely stated that the manager of a professional football team had been siphoning off proceeds from ticket sales to support his gambling habits, with the result that the club was suffering serious financial difficulties. The manager wishes to bring an action against the newspaper for defamation.

Which of the following statements describes an element which the manager must prove in order to make a successful claim against the newspaper for defamation?

The manager must prove that the newspaper was negligent in publishing the article.

The manager must prove that the newspaper acted with malice in publishing the article.

The manager must prove that the newspaper did not reasonably believe that publishing the article was in the public interest.

The manager must prove that the newspaper article caused him to suffer specific quantifiable financial loss.

The manager must prove that the statement is likely to cause serious harm to his reputation.

A

(E) The manager must prove that the statement is likely to cause serious harm to his reputation. For a successful claim in defamation, the manager must prove that a defamatory statement which referred to him was published. On the facts, the statement clearly referred to the manager and was published. A defamatory statement is one which would tend to lower the claimant in the eyes of right-thinking members of society, which appears to be satisfied on the facts. Statute also provides that a statement is not defamatory unless its publication has caused, or is likely to cause, serious harm to the reputation of the claimant. So, the manager must establish this to be successful. (A) is not correct. Negligence is not a requirement for a defamation action. (B) is not correct. Proof of malice is not a requirement for a defamation action. (C) is not correct. The newspaper may seek to rely on the defence of publication on a matter of public interest. The burden would be on the newspaper to prove both that the defamatory statement was on a matter of public interest and that the newspaper reasonably believed that publishing the statement was in the public interest. The defence might apply to allegations of corruption in sport. However, this choice does not describe this correctly because the defendant has the burden of proving this defence; the claimant does not have the burden of disproving it. (D) is not correct. The defamatory statement was published by the newspaper in written form and so is libel. For a successful claim in libel, it is not necessary to show specific quantifiable financial loss (special damage). The claimant only needs to establish general damage to reputation itself which must be sufficiently serious, as explained above.

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3
Q

A claimant has issued proceedings against a defendant for trespass. The defendant files an acknowledgment of service within a week of being served. The claimant believes the defendant has no viable defence and so immediately applies for summary judgment, including written evidence to support the application.

Which of the following best states the legal position with regard to the application?

The application was made too early, as the defendant had not yet filed a defence.

The application was within a proper timescale, and the defendant must now serve a defence

The application was made too early, as the claimant had to wait at least 14 days after the defendant acknowledged service before applying for summary judgment.

The application was made too early, as the claimant had to wait at least two days after the defendant acknowledged service before applying for summary judgment.

The application was within a proper timescale, and the defendant must serve evidence in response at least seven days before the hearing.

A

(E) As soon as the defendant files an acknowledgment of service, it is open for the claimant to make an application for summary judgment. If the claimant applies for summary judgment following acknowledgment of the claim and includes written evidence to support the application, the defendant must serve evidence in response at least seven days before the hearing on the application. (A) is incorrect because the claimant does not need to wait until the defendant has filed a defence. (B) is incorrect because the defendant is not required to serve a formal defence at this point (although it may be helpful in opposing the application). (C) and (D) are incorrect because there is no two-day or 14-day waiting period.

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4
Q

A machine operator sued their former employer in the County Court for an injury that arose whilst operating a machine in the employer’s factory. The claim was heard before a Circuit Judge. The employee lost and would like to appeal on grounds that the judgment is unjust because of a serious procedural or other irregularity in the proceedings.

Which of the following courts have the power to grant permission for the appeal?

The High Court only.
The Court of Appeal only.
The County Court which heard the case only.
The High Court and the Court of Appeal.
The County Court which heard the case and the High Court.

A

(E) A party wishing to appeal must make an application to appeal in either the court where the decision was made or the court in which the appeal would be heard. Here, the case was heard by a Circuit Judge in the County Court. Cases heard by Circuit Judges are appealed to the High Court. Therefore, the County Court which heard the case and the High Court may grant permission for the appeal here. (A) and (C) are incorrect because they each fail to mention the second possibility. (B) and (D) are incorrect because the Court of Appeal hears appeals (and can grant permission for an appeal) only from a decision of the High Court.

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5
Q

A seller agrees to sell his house to a buyer. The seller agrees to leave all of his bedroom furniture at the property on completion. The parties are using the Contract Incorporating the Standard Conditions of Sale (5th edition - 2018 revision) in the transaction. The seller’s solicitor agrees to draft a special condition to insert into the contract to deal with this point.

What are the special conditions?

A

E) The special conditions are the part of the contract containing the conditions that are particular to that transaction. Any issue agreed between the seller and the buyer must be included in the contract for the issue to be legally binding. Thus, the issue of the seller agreeing to leave furniture at the property on completion would be inserted into the contract as a special condition since it is specific to this transaction. (A) is incorrect because the part of the contract which covers issues such as formation of the contract, service of notices, condition of the property, completion, and remedies is known as the ‘standard conditions of sale’. (B) is incorrect because the key transactional details regarding the parties, the purchase price, and details of the property are known as the ‘particulars of sale’. (C) is incorrect because the document containing practical information for the buyer about the property is known as the ‘Property Information Form’. (D) is incorrect because the requirement for a contract for the sale of land to be in writing is contained in a statute (section 1 of the Law of Property (Miscellaneous Provisions) Act 1989), not the contract.

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6
Q

A solicitor acting for a buyer has started their investigation of the unregistered title which has been provided by the seller’s solicitor. The buyer’s solicitor notes that there is a conveyance dated 5 June 1995 to the current seller contained in the epitome of title.
Which of the following best indicates how the buyer’s solicitor should proceed?

The buyer’s solicitor should raise pre-contract enquiries and seek confirmation that the seller has observed the covenants contained in the conveyance dated 5 June 1995.

The buyer’s solicitor should require the seller’s solicitor to prepare an application for first registration which the buyer’s solicitor can submit to the Land Registry following completion.

The buyer’s solicitor should return the epitome to the seller’s solicitor requiring them to make an application for first registration of the title to the land.

The buyer’s solicitor should report to their client indicating that the title is defective and advising their client to withdraw from the transaction.

The buyer’s solicitor should request the original title deeds from the seller’s solicitor and submit an application for first registration of title to the land.

A

(C) The best way for the buyer’s solicitor to proceed would be to return the epitome to the seller’s solicitor and require them to make an application for first registration of the title to the land. The conveyance is dated after 1 December 1990, and it is clear from the facts that the title is still unregistered because they refer to the epitome of title. The conveyance dated 5 June 1995 was a trigger for first registration. Accordingly, requiring the seller to make the application for first registration is the appropriate response. (A) is incorrect both because the question does not make any reference to covenants contained in the conveyance and because it does not address the central point of the question – the fact that the 5 June 1995 conveyance triggered the requirement of first registration. (B) and (E) are incorrect as the buyer’s solicitor would not make the application for first registration themselves; rather the seller’s solicitor must do so prior to exchange. (D) is incorrect as it is too extreme (assuming that the buyer wants the property). There may be a delay in the transaction (and the buyer’s solicitor should certainly inform the buyer of that fact), but the fact that first registration should have been carried out is not reason enough to withdraw if the buyer is keen to obtain the property.

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7
Q

A solicitor is acting for a developer who is purchasing a plot of land for development. The developer has been told that the property has the benefit of a planning permission to build two houses, which is why the plot is of interest to the developer. The developer has carried out a site visit to the plot and has noted that it is a bare piece of land. The developer will need to clear the grass and bushes on the land before building starts. The solicitor’s local search has revealed a planning permission for the development of two houses which is dated four years ago.

What advice will the solicitor give their developer client in this regard?

The enforcement period for the planning permission is four years so the developer has no concerns in this regard.

The planning permission is more than three years old and has not been implemented, so it has lapsed.

The planning permission is less than five years old, so the developer has a year within which to commence development.

The planning permission is less than 10 years old so the developer has six years within which to commence development.

The developer should commence building the two houses and then apply to the local authority for retrospective planning permission.

A

(B) The solicitor should advise that the planning permission is more than three years old and has not been implemented, so it has lapsed. After planning permission is issued, the development must commence within three years of the date of the permission or it lapses. Here, the facts indicate that permission was granted four years ago and that the site is a bare piece of land. Therefore, it is clear that no development has commenced. Thus, it lapsed. (A) is incorrect. Do not get muddled with time limits and planning. The enforcement period for building without planning permission is four years (that is, if development is undertaken without permission, the local authority has four years to bring an enforcement action) but there has been no breach as yet because no building was commenced. (C) is incorrect. The time limit for commencement of development under a planning permission used to be five years but it is now decreased to three years. (D) is incorrect, as 10 years is the enforcement period for unauthorised change of use. (E) is incorrect. The developer would run a risk of enforcement, and there is no guarantee that he would get retrospective planning permission for the works.

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8
Q

A solicitor in a conveyancing department is about to complete on a purchase for a buyer client. The solicitor has submitted the required certificate of title to the buyer’s lender.

What is the certificate of title?

It is a document confirming to the lender that the title is good and marketable only.
It is a document confirming that the title is good and marketable and acts as a request for the release of the mortgage advance.

A

(C) The certificate of title is a document confirming that the title is good and marketable and acts as a request for the release of the mortgage advance. Thus (B) is incorrect as this only describes one of the functions of the certificate of title. And (A), (D), and (E) are incorrect because they do not correctly describe the function of the certificate of title.

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9
Q

Jessica, Keith, Lionel and Margaret were friends. In 2012 they purchased the freehold property “Cliff Cottage” for occasional use as a holiday home. The conveyance to them contained an express declaration that they were beneficial joint tenants. In 2015, Keith wrote letters to each of the others saying that he wanted the property sold so that his share could be paid to him out of the proceeds of sale. His letters were properly delivered. The property was not sold.
Keith died leaving all his property to Nicola.
In 2015 Jessica, by a Deed of Gift, gave her beneficial interest to Nicola. In 2017 Lionel died leaving all his property to Nicola.

Is the following statement True or False?

Both Jessica’s and Lionel’s gifts will pass their beneficial shares in the property to Nicola.

A

the statement is false. Beneficial interests held on a joint tenancy cannot pass by will. So, Jessica’s lifetime gift will be effective as an example of severance by alienation which complies with s53(1)(c) LPA 1925, but Lionel’s gift in his will does not pass his share to Nicola.

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10
Q

A trainee solicitor is dealing with their first completion involving an unregistered title. The trainee notes that a full land charges search has been carried out.
What is the significance of the search?

It gives rise to a 30-working-day priority period within which completion should take place.

It gives rise to a 14-working-day priority period within which completion should take place.

It gives rise to a two-month priority period within which completion must take place.

It gives rise to a 15-working-day priority period within which completion should take place.

It gives rise to a two-week priority period within which completion should take place.

A

(D) If title is unregistered, a full land charges search must be carried out against the full name of the current estate owner for the full period of their ownership. The search result confers a 15-working-day priority period during which the transaction should complete. Any application to register a land charge against the owner made during the 15-day period will be held until the buyer’s priority period has expired. If the transaction completes during the 15-day period, such registration will be ineffective, but if completion goes beyond the 15-day period, the registration will be effective against the buyer and the solicitor will probably be liable for the costs of removing the land charge due to negligence. Thus, the remaining answers are incorrect.

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11
Q

A solicitor has agreed to prepare a presentation to explain the process of completion to the new recruits in a conveyancing department.

What are the methods of completion that the solicitor will refer to in the presentation?

By agent, by physical possession, by personal attendance.

By phone, by personal attendance, by post.

By post, by agent, by physical attendance.

By agent, by phone, by personal attendance.

By personal attendance, by agent, by post.

A

(E) These are the three methods of completion: personal attendance, agent, post. Do not confuse these with the methods of exchange: person, post, and phone. It is not possible to complete by phone. Thus, the remaining answers are incorrect.

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12
Q

A woman has obtained a grant of probate and has instructed a solicitor to act for her in relation to the sale of her deceased mother’s property. The woman is selling the property on behalf of the estate as a personal representative but has never lived in or visited the property herself.

Which title guarantee is most appropriate in this circumstance?

Full title guarantee
Indemnity title guarantee
No title guarantee
Unregistered title guarantee
Limited title guarantee
A

(E) A limited title guarantee is narrower in scope than a full title guarantee; in it, the seller merely warrants that the seller has not created any charges or granted any rights during their period of ownership that have not been disclosed in the contract. A limited title guarantee is typically given by a seller with less knowledge or involvement with the property and is most appropriate when the seller is a personal representative. (A) is incorrect. A full title guarantee includes a guarantee that the seller is entitled to sell the property, that they will do all in their power to transfer the purported title to the buyer, and that they are selling the property free from all charges or encumbrances other than those disclosed in the contract. It is generally given by a seller who owns the full legal and equitable interest in the property and has lived at the property. In most cases, a personal representative will not have this level of knowledge and so this guarantee would not be appropriate. That is the case here, as the personal representative has neither visited nor lived at the property. (B) and (D) are incorrect. There are no such title guarantees. (C) is incorrect. No title guarantee is typically given by a seller who has no knowledge of the property at all (for example, a mortgagee in possession).

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13
Q

A man has instructed a solicitor to act in relation to the sale of the man’s house. The Contract Incorporating the Standard Conditions of Sale (5th edition – 2018 revision) will be used, unamended. The buyer is offering a 10% deposit on exchange of contracts. The seller has a related purchase in which he is buying a holiday home in France and he wishes to use the deposit towards this purchase.

Can the seller use the deposit for his related purchase?

No, because the standard conditions of sale permit the use of a deposit for a related purchase of a property only for the seller’s residence in England and Wales.

Yes, because the standard conditions of sale permit the use of a deposit for a related purchase of a property for the seller’s residence anywhere in the world.

No, because the standard conditions of sale permit the use of a deposit only for a related purchase of a property which the seller will exclusively rent out.

No, because the standard conditions of sale do not permit the use of a deposit for any related purchase of a property.

Yes, because the standard conditions of sale permit the use of a deposit for a related purchase of a property when the deposit is at least 10%.

A

(A) The seller cannot utilise the deposit for the related purchase in France because the standard
conditions of sale permit the use of a deposit only for a seller’s related purchase of a property for their residence in England and Wales. Here, the parties are using the Contract Incorporating the Standard Conditions of Sale unamended, and seller’s related purchase is a property in France. Therefore, the deposit cannot be passed on in this chain of transactions. (B) is incorrect because, as explained above, the standard conditions of sale do not permit the use of a deposit for a related purchase that is outside England and Wales. (C) is incorrect because the standard conditions of sale do not permit the use of a deposit for a related purchase of a property that will not be used as the seller’s residence (and again, the property also cannot be outside England and Wales). (D) is incorrect because, as explained above, the standard conditions do permit the use of a deposit for a related purchase if this purchase is of a property in England and Wales that will be used as the seller’s residence. (E) is incorrect because there is no such term in the standard conditions of sale.

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14
Q

A married couple are buying a freehold house. Their solicitor has received the contract package from the seller’s solicitor.
Which document in the contract package will give the buyers practical information about the property, such as disputes and notices?

Leasehold Information Form.
Standard Commercial Property Conditions.
Pre-contract enquiries.
Fittings and Contents Form.
Property Information Form.
A

(E) The Property Information Form is the Protocol form which is completed by the sellers at the beginning of a sale transaction involving a residential property. It is supplied to the buyers as part of the contract package. Thus, the remaining answers are incorrect.

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15
Q

A lease of a commercial factory unit contains the following clause:
‘The tenant must not assign the whole or part of the demised premises to any person whatsoever without the prior written consent of the landlord’.

What is the name of the document which gives effect to the above clause?

A consent to assignment
A licence to assign

A

A licence to assign

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16
Q

A buyer is purchasing a 500-year-old cottage which he discovers is listed as a Grade II historic building. The buyer asks the estate agent for the Energy Performance Certificate (‘EPC’). The estate agent tells the buyer that an EPC is not required.

Is the estate agent correct?

No, because an EPC is required upon the sale of all properties.

Yes, because an EPC is not required for a listed building.

Yes, because an EPC is not required for a residential property.

No, because an EPC is required only if the property is less than 10 years old.

It depends on the energy efficiency of the property which would be revealed by the buyer’s survey.

A

(B) The estate agent is correct because an EPC is not required for a listed building. (A) is incorrect because it is overbroad. As just explained, an EPC is not required for sales of listed historic buildings. (C) is incorrect, as an EPC is required upon the sale of residential properties as well as commercial properties. (D) is incorrect, as an EPC is required for the sale of any non-listed building. Ten years is the relevant time period for which an existing EPC may be relied on.

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17
Q

A paralegal has just joined a conveyancing department. Their principal has given them a large bundle of unregistered title deeds and has asked them to prepare an epitome of title. The paralegal is not sure what an epitome of title is.
Which of the following statements best describes an epitome of title?

A chronological list of the unregistered title documents, together with the original listed documents.

A document which is at least 15 years old and which does not cast any doubt on the title.

A chronological list of the pre-root documents, together with copies of those documents attached.

The chronological list of ownership going back at least 15 years shown on the Property Register.

A chronological list of the unregistered title documents, together with a photocopy of those documents attached.

A

(E) The epitome comprises a chronological list of the documents of title together with a photocopy of those documents attached. (A) is incorrect because the epitome will not include original documents, but rather only photocopies of the originals. The original title deeds will not be sent to the buyer’s solicitor until completion. (B) is incorrect as it describes two elements of a good root of title – the epitome should show this, but these elements do not explain what an epitome is. (C) is incorrect because the epitome will not contain all of the pre-root documents; it will only list and include copies of documents going back to the root. (D) is incorrect as the Property Register is used with respect to registered land; an epitome is used to deduce title with respect to unregistered land. There is no Property Register for unregistered land.

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18
Q

A solicitor is acting on the purchase of a new build property for a client. The solicitor sees that the client has left a message because they are concerned about the upkeep of the road fronting the property.
How will the solicitor find out the information which the client is seeking?

The local search.
The commons registration search.

A

(A) A local search gathers information from the local authority. The first part of a local search reveals whether there are registrations by the local authority in the land charges register. The second part is a standard set of enquiries of the local authority which include enquiries about roads fronting the property, public rights of way, and planning entries and building regulations relevant to the property. A local search may also include optional enquiries.
(D) is incorrect because a commons registration search is an optional search which is performed when the property appears to abut common land or a town or village green to determine whether use of the property is restricted or burdened by its proximity to public land.

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19
Q

A solicitor is acting for the buyer of a factory unit. The replies to enquiries provided by the seller confirm that the seller built a small additional room on the rear of the factory unit three years ago. The seller could not produce evidence that planning permission was obtained, and neither could they provide a building regulations completion certificate.

There is some evidence that some of the work was not in compliance with building regulations. However, the solicitor is satisfied that the addition to the building fell within the permitted development rules and so the local authority would have no ground to bring an enforcement action with respect to the additional room.

Is the solicitor correct?

Yes, because planning permission was not required, and the local authority has only two years in which to enforce building regulations.

Yes, because planning permission was not required, and the local authority has only 12 months in which to enforce building regulations.

No, because although the local authority has only 12 months to take enforcement action for noncompliance with building regulations, they may seek an injunction to force compliance at any time.

No, because although the local authority has only up two years to take enforcement action for noncompliance with building regulations, they may seek an injunction to force compliance at any time.

No, because although the local authority has only up two years to take enforcement action for noncompliance with building regulations, they have 10 years in which to seek an injunction to force compliance at any time.

A

C) The solicitor is incorrect because even if planning permission is not required for building work, a building regulations completion certificate must be obtained from the local authority to confirm that the work has been carried out satisfactorily. Although the local authority has only 12 months in which to bring an enforcement action based on the failure to obtain a certificate, it may seek an injunction to force an owner to bring the property up to standards (if the work was not up to standards) at any time if the work is deemed to be dangerous.

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20
Q

A solicitor is acting for a first-time buyer regarding the purchase of a flat. The solicitor has received the mortgage offer which contains the following condition:
‘Solicitor must ensure that the borrower is advised to pay off existing credit card borrowing of £2,300 prior to drawdown of the loan.’
The solicitor has reported fully to the client on the terms of the offer. The client agreed to the terms, and the solicitor has exchanged contracts with the seller’s solicitor. As the completion date is near, the solicitor reviews the file and discovers that there is no record confirming that the client has repaid their credit card debt. Nonetheless, the solicitor prepares a certificate of title and submits it to the lender.

Has the solicitor breached any duties with respect to the buyer’s credit card borrowing?

Yes, because best practice demands that the solicitor obtains evidence that the credit card has been paid off before completion.

No, because under the circumstances, the solicitor does not have a duty to ensure that the credit card is paid off before completion.

Yes, because the client has not paid off the credit card before completion.

No, because the UK Finance Mortgage Lender’s Handbook prohibits lenders from imposing such a condition on the solicitor.

Yes, because the UK Finance Mortgage Lender’s Handbook requires solicitors to ensure their clients’ credit card debts are fully paid before submitting the certificate of title to the lender.

A

(B) The solicitor has not breached any duties because, under the circumstances, the solicitor did not have a duty to ensure that the credit card is paid off before completion. A solicitor has a duty to fulfil any undertaking the solicitor makes and to follow the lender’s instructions. Here, the lender instructed that the solicitor must ensure that the borrower is advised to pay off their existing credit card debt prior to drawdown of the loan. The condition only requires the solicitor to ensure that the borrower has been advised about the issue, and the facts make it clear that the solicitor has fully reported the conditions to the client. Therefore, (C) is incorrect. (A) is incorrect because there is no such ‘best practice’ requirement. (D) and (E) are incorrect because the Handbook does not address the borrower’s credit card debt.

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21
Q

A new solicitor in a conveyancing department has received a large bundle of title deeds from their client. The solicitor has been asked to prepare an epitome of title but is struggling to know where to start.

Which document would be the most appropriate to choose as the root of title?

Deed of gift dated 18 years ago.
A conveyance on sale dated 16 years ago.
An assent dated 12 years ago.

A

(B) The most appropriate document to choose as a root of title among the choices is the conveyance on sale dated 16 years ago. To be a good root, the document must deal with the whole legal and equitable interest in the property, contain an adequate description of the property, be at least 15 years old at the date of the contract, and do nothing to cast doubt on the title. A conveyance on sale is the most common root of title and also the most appropriate. This is because the title will have been investigated at the time of that transaction whereas the title may not have been investigated thoroughly, if at all, where there is a deed of gift (A) or an assent (C)

22
Q

A new solicitor has started to work on a conveyancing file for a buyer client who is purchasing a building from a sole proprietor. The buyer intends to use the building as a shop for their business, which is incorporated. The buyer has sufficient funds from their business to pay cash for the building.

Contracts have not yet been exchanged by the parties. The solicitor has checked the epitome of title and has obtained a local search, a drainage and water search, and an environmental search with respect to the property.

Should the solicitor have carried out any other search based on the facts given?

Yes, under the facts given the solicitor should have carried out a bankruptcy search against the buyer’s name.

Yes, under the facts given the solicitor should have carried out a coal mining search.

No, under the facts given, the solicitor needed to carry out only a local search, a drainage and water search, and an environmental search.

Yes, under the facts given the solicitor should have carried out an index map search.

Yes, under the facts given the solicitor should have carried out a company search.

A

(D) Under the facts given the solicitor should have carried out an index map search. Look out for the clue in the question. You are told that the paralegal has checked the epitome of title, so the title in question is unregistered. When title is unregistered, in addition to carrying out the local search, drainage and water search, and environmental search that should be done pre-contract in every purchase, the solicitor should also carry out an index map search to reveal whether the title to the property is already fully or partially registered. This will be done whether the use of the property is residential or commercial.

23
Q

A trainee has just started working in the conveyancing department. They are assisting with a purchase file and have received a note from their principal to report a breached covenant to the lender ‘in accordance with the Handbook’. The trainee is not sure what their principal means.

What Handbook is the principal referring to?

The Council for Mortgage Lender’s Handbook.
The Solicitors Regulation Authority Handbook.
The UK Finance Mortgage Offer Handbook.
The UK Finance Mortgage Lender’s Handbook.
Her Majesty’s Land Registry Lender’s Handbook.

A

(D) Most mortgages are handled under the terms of the UK Finance Mortgage Lender’s Handbook and the Building Societies Association Mortgage Instructions.

24
Q

A solicitor is acting for a client who is buying a large property for £2 million. The solicitor has received the initial paperwork and notes that it is a listed building. The client is obtaining a mortgage.

How will the lender check that the property represents good security for the loan?

By obtaining a full structural survey.
By obtaining a homebuyer’s survey.
By carrying out a physical inspection of the property.
By obtaining a mortgage valuation report.

A

(E) Prior to issuing a mortgage offer, the lender will obtain a mortgage valuation report to confirm that the property represents good security for the loan and require the buyer to provide evidence that they can afford the mortgage.

25
Q

A limited company is purchasing a row of freehold shops situated on a local high street. The company has received a telephone call from their solicitor to confirm that the purchase has just completed. The company’s director is relieved because the matter involved complex unregistered title issues.

When did/does title to the shops pass to the company in this transaction?

Title will pass on registration at Her Majesty’s Land Registry.
Title passed on completion.
Title will be held by the seller on trust until registration at Companies House.

A

(D) In an unregistered title transaction, title passes to the buyer (here, the limited company) on completion. (B) is incorrect because this is the position in a registered title transaction. Here, the title is unregistered and therefore passes on completion

26
Q

A limited company has instructed a solicitor to act on the purchase of a lease of shop premises. The company is taking an assignment of an existing lease which has a residue of 15 years and an unregistered title.

What steps will the solicitor acting for the limited company need to take after completion?

The solicitor should send a stamp duty land tax return and pay any tax due within 14 days and will apply to register the leasehold title at the land registry within two months of completion.

The solicitor should send a stamp duty land tax return and pay any tax due within 30 days and will apply to register the leasehold title at the land registry within two months of completion.

The solicitor should pay any stamp duty land tax due within 14 days and apply to register the leasehold title at the land registry within the priority period of the official search.

A

A) The solicitor must file a stamp duty land tax (SDLT) return and pay any tax due within 14 days and will apply to register the leasehold title at the land registry within two months of completion. An SDLT return is due within 14 days, and any tax due must be paid within that period. This is a strict deadline. The leasehold title is registrable first because it is currently unregistered and second because the residue of the lease is more than seven years. As this is a first registration, it must be done within two months of completion. (B) is incorrect because it states the wrong timescale for submitting the return and paying the tax. (C) is incorrect. For unregistered title, registration must take place within two months (30 days is the timescale for registering with respect to a registered title). Additionally, the epitome of title (listing and giving copies of title documents) is not prepared by the buyer’s solicitor post-completion; rather it is prepared by the seller’s solicitor at the beginning of a transaction when title is unregistered. (D) is incorrect for the same reason (although it does correctly state the registration timescale). (E) is incorrect. As the title to the lease is currently unregistered, the solicitor will not be carrying out an official search with priority.

27
Q

A landlord has been having trouble finding tenants for a building owned by the landlord. The building’s sole tenant is the owner of a dry cleaning business who has a shop that takes up most of the first floor of the building. The tenant’s 15-year lease will expire in 10 months. The landlord would like to demolish the building and sell the property to a developer. The landlord therefore serves a section 25 notice on the tenant, indicating a desire to end the tenancy at the end of the lease term.

The tenant is upset because they have been in business in the building for over 14 years, they have always complied with the obligations of their lease, and there is no available suitable space for their business nearby.

What remedy, if any, will be available to the tenant under these circumstances?

A suit to prevent termination of the tenancy because the tenant has always complied with the terms of the lease.

No remedy will be available because the term of the tenant’s lease will have expired.

A suit to prevent termination of the tenancy because the desire to demolish a building and sell the property to a developer is not among the statutory grounds justifying the termination of a commercial tenancy.

Statutory compensation, because the landlord’s ground for terminating is not the tenant’s fault and no alternative suitable space is available for the tenant’s business.

A suit to prevent termination of the tenancy because suitable alternative premises are not available

A

Statutory compensation, because the landlord’s ground for terminating is not the tenant’s fault and no alternative suitable space is available for the tenant’s business.

28
Q

Two solicitors have just exchanged contracts on the telephone for their respective clients. They have used the Law Society’s Formulae for Exchange and are about to prepare their file note detailing the memorandum of exchange.

Which of the following pieces of information does not need to appear in the memorandum of exchange?

The date and time of exchange.
The seller's solicitor's client account number.
The exchange formula used.
The completion date.
The names of the solicitors involved.
A

(B) The memorandum of exchange is a central part of the requirements of the formulae and is designed to ensure that both solicitors have a contemporaneous and accurate written record of the conversation which effected exchange. In practical terms, it is important for the buyer’s solicitor to have the seller’s solicitor’s client account number, but this is not part of the prescribed information required by the formulae. Thus, the remaining answers are incorrect.

29
Q

A solicitor who works in the pre-completion department of a conveyancing firm carries out the pre-completion land charges search. The search is required because their buyer client is acquiring an unregistered title. The solicitor must ensure that they note the expiry of the priority period on the firm’s case management system.

What priority period will the solicitor note in this case?

15 working days
30 working days

A

(A) Fifteen working days is the priority period for a full land charges search in the unregistered system. Do not confuse this with the official search with priority (OS1) 30-working day priority period in the registered system.

30
Q

A commercial property solicitor returns from holiday to realise that a charge which should have been registered at Companies House on behalf of a company client has not been registered.

What is the deadline that has been missed?

21 working days
30 days
30 working days
21 days
15 days
A

(D) 21 straight days is the strict timeframe. None of the other choices state the appropriate timescale and so are incorrect

31
Q

A woman was injured on an escalator that malfunctioned at a railway station. The woman has missed 14 weeks of work due to her injury and is not entitled to company sick pay. She is now struggling to pay her bills.

The rail company has accepted primary liability, but it alleges that the woman was partially responsible for her own injuries, as she was running up the escalator. Therefore, the rail company has ignored three requests the woman has made for interim payments.
The rail company has now offered mediation, but the woman’s solicitor has recommended that she reject the offer of mediation and issue court proceedings.
Is the woman’s refusal to mediate likely to be found reasonable?

Yes, because the woman needs to issue proceedings so that she can make an application for an interim payment.

No, because a bona fide offer to mediate has been made.

Yes, because the defendant is being unreasonable by refusing to admit 100% liability.

No, because the rail company has admitted primary liability.

Yes, because it will enable the woman to make an application for specific disclosure of documents relating to the maintenance of the escalator.

A

A) Yes, the court likely will consider it reasonable because three requests have already been made for a voluntary interim payment, all of which have been ignored. The woman’s financial situation is now urgent and, having accepted primary liability, the rail company is being unreasonable in not agreeing to an interim payment. Therefore, the woman’s refusal to mediate so that she can more quickly apply for an interim payment will be seen as reasonable. (B) is incorrect because, whilst the parties are under a duty to consider ADR, the need for litigation has arisen because of the failure of the defendant to respond to the reasonable request for an interim payment.
(E) is incorrect because there is no need for proceedings to be issued for a specific disclosure application to be made. If the relevant documents are not disclosed as part of the pre-action protocol, an application for disclosure can be made pre-issue

32
Q

While riding a bicycle, a man was struck by a car driven by a woman of French citizenship. The man brings a claim against the woman in County Court and she is properly served in France. The woman believes the County Court does not have jurisdiction over the matter.

How should the woman respond?

Tick the box on the acknowledgment of service form indicating she wishes to dispute jurisdiction and make an application to do so within 28 days after the deemed date of service.

Tick the box on the acknowledgment of service form indicating she wishes to dispute jurisdiction and make an application to do so within 14 days after the deemed date of service.

Acknowledge service within 28 days and file a defence raising the jurisdictional issue.

Acknowledge service within 14 days and file a defence raising the jurisdictional issue.

A

(B) A defendant who wishes to dispute a court’s jurisdiction must tick the relevant box on the acknowledgment of service form and make an application, supported with written evidence, within 14 days of the deemed date of service. The defendant must not file a defence until after the court has heard the application. Filing a defence is likely to be taken as submission to jurisdiction that would negate the challenge. If the defendant’s application fails, they will be required to file a defence at that point, probably within 14 days.

33
Q

A confectionery company is run by a board of three directors. In reality, the day-to-day management of the company is left to one of the directors, and as a result this director calls himself the managing director, although there has never been any formal appointment to this role. The managing director has entered into a contract with a new supplier, but the other members of the board are not happy with the terms of the contract and are now refusing to pay the supplier, claiming that the managing director did not have the authority to enter into the contract on the company’s behalf.

Are the other directors correct regarding the authority of the managing director?

Yes, because the board is required to act collectively and an individual director does not have the authority to bind the company.

Yes, because as the director has not been formally appointed as managing director, any acts carried out by this director are invalid.

Yes, because the contract was with a new supplier and so the director lacked apparent authority.

No, because the director acted with express actual authority.

No, because the director had implied actual authority to enter the contract.

A

(E) The directors are not correct as the director acted with implied actual authority. The board of directors is in charge of day-to-day management of the company. Although they must act collectively, they can collectively grant an individual director specific, delegated powers-expressly or impliedly; or their words or action towards third parties can give rise to apparent (ostensible) authority. Here, the board permitted the director to act as a managing director, giving rise to implied actual authority. In essence, the board of directors are estopped from denying that the director had authority to contract on behalf of the company. (A) is incorrect because, as explained above, while the board does have to act collectively, they can collectively delegate powers to a particular individual, as they did here. (B) is incorrect because it is irrelevant that the individual has not been formally appointed. The board has allowed the director to operate as a managing director and enter into contracts in the past, and so the director has implied actual authority to do so with the new supplier. (C) is incorrect because the director and supplier can rely on implied actual authority under the facts here. Additionally, the fact that the supplier is new does not completely negate the possibility that the director had apparent authority-that would depend on whether the company did anything to make the new supplier think the director had authority to enter the contract. Allowing the director to hold himself out as a managing director could be enough to give rise to apparent authority. (D) is incorrect, as express actual authority would require an express statement-a formal appointment or grant of power-and we do not have that here.

34
Q

A firm of recruitment consultants are suing a former client for payment of commission under their contract. The value of the claim is £40,000.
Which of the following best describes the parties’ obligation with regard to costs budgeting?

The claimant only must file a costs budget at least 21 days before the first case management conference.
Both parties must file a costs budget at least 21 days before the first case management conference.

The claimant must file a costs budget with the Directions Questionnaire and the defendant must file their budget within 21 days.

Both parties must file a costs budget with the Directions Questionnaire.

Both parties must file a costs budget at the same time as they file their statement of case.

A

(D) For cases in which less than £50,000 is sought, the requirement is for both parties to file their budget with the Directions Questionnaire. (A) and (B) are incorrect. Parties must simultaneously file their budgets 21 days before the first case management conference when the case involves a claim of £50,000 or more, and this case does not meet this threshold. (C) is incorrect because the parties must file their costs budgets simultaneously. (E) is incorrect because the costs budget is not required until the point of the Directions Questionnaire, which comes after the parties file their statements of case.

35
Q

Two friends have decided to form a partnership for their business selling textiles. One partner wishes to be active in the business and the other partner wishes to be more of a sleeping partner. They are weighing up the pros and cons between a general partnership and a limited partnership.

Which of the following statements is correct regarding a general partner in a general partnership as compared to a general partner in a limited partnership?

A general partner in a general partnership has greater rights and powers than a general partner in a limited partnership.

A general partner in a general partnership has greater liability than a general partner in a limited partnership.

A general partner in a general partnership and a general partner in a limited partnership have the same rights and powers.

A general partner in a general partnership has rights and powers provided by the partnership agreement, while a general partner in a limited partnership has rights and powers provided by statute.

A general partner in a limited partnership has rights and powers provided by the partnership agreement, while a general partner in a general partnership has rights and powers provided by statute.

A

(C) A general partner in a limited partnership has unlimited liability for the debts of the partnership and has the ability to manage the partnership, which is exactly the same as all of the general partners in a general partnership. (A) is incorrect because a general partner in a general partnership does not have greater rights and powers than a general partner in a limited partnership. (B) is incorrect as a general partner in a general partnership does not have greater liability than a general partner in a limited partnership, as both have unlimited liability. (D) and (E) are both incorrect because a general partner in a general partnership and a limited partner in a limited partnership both have rights and powers provided by statute, but if there is a partnership agreement in place between the partners, the terms of this agreement will take priority over the statutory provisions

36
Q

The managing director of an architecture company was aware of a lucrative contract to design a building for a gas company. He had been told that the gas company did not want to contract with his company, but wanted to do business directly with him. The managing director resigned from the company due to ‘ill health’ so that he could take on the contract personally. The architecture company sued him for breach of duty.

Is the architecture company likely to succeed in its claim against their former managing director?

Yes, because the managing director breached his duty to avoid conflicts of interest.

Yes, because the managing director breached his duty not to accept benefits from third parties.

No, because the managing director has been released from his contract and is not bound by any obligations to the architecture company.

No, because once the managing director ceased to be a director he no longer had any statutory duties

No, because the gas company chose not to contract with the architecture company, so the managing director was free to contract with the gas company directly.

A

(A) A director must avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company. This applies in particular to the exploitation of any property, information, or opportunity. What this duty means in practice is that there should not be a conflict between a director’s fiduciary duties and his own personal interests. This duty extends to a director not making an unauthorised profit as a result of a conflict of interest. (B) is incorrect because, while the duty not to accept benefits from third parties is also a statutory duty, it is not relevant to this particular scenario. (C) is incorrect because the fact that the managing director has been released from his contract does not have an effect on his statutory duties, only his contractual ones. (D) is incorrect because directors may still be subject to statutory and fiduciary duties owed for the period when they were a director, even after they have ceased being a director. (E) is incorrect because it is immaterial whether the company could or would have taken advantage of the property, information, or opportunity that the director subsequently took personally.

37
Q

A shareholder of a limited company, who was also the company’s solicitor, drafted a provision in the company’s articles of association to the effect that he would be employed by the company as its solicitor for life. The company subsequently removed him as its solicitor, as they were not happy with his work. The shareholder brought an action against the company for breaching the articles.

Would the shareholder be successful in his claim?

Yes, because the articles are enforceable by the members against the company.

Yes, because the articles of association are a contract between him and the company, in respect of all his rights.

Yes, because employment rights of company employees are governed by the articles of association.

No, because he is attempting to enforce an employment right, not a membership right.

No, because the articles of association are not binding on him.

A

(D) The articles of association form a contract between the company and the members, but in respect of membership rights only. The solicitor in this case is attempting to enforce an employment right, so would not be successful. (A) is incorrect because the articles are enforceable by the members against the company, but in respect of their membership rights only. (B) is incorrect because the articles of association are a contract between the member and the company, but in respect of membership rights only, not all rights. (C) is incorrect as employment rights should not usually be contained in the articles, but in separate contracts that would be enforceable by the employee in question, for example, the directors’ service contracts. (E) is incorrect because the articles of association are binding on the members, as they form a contract between the members and the company

38
Q

A claimant secures judgment against a defendant in respect of a negligence claim in the County Court for £4,500 inclusive of interest. The defendant informs the claimant that it will take them six months to pay the judgment.

Is the claimant entitled to interest for the period between judgment and enforcement?

No, as judgments are expressed to be inclusive of interest.

No, as it is a County Court judgment for less than £5,000.

Yes, at the contract rate.

Yes, at the County Court rate.

Yes, pursuant to the overriding objective.

A

(B) Normally interest is not payable on County Court judgments under £5,000 unless the claim arose in contract and the contract provides for interest. As the judgment here is for only £4,500, it does not meet the amount requirement for the recovery of interest. Therefore, (D) is incorrect. (A) is incorrect even though it states the correct result, because the rationale is incorrect-the fact that a judgment includes interest would not of itself preclude claiming further interest for the period between the judgment and enforcement of the judgment. (C) is incorrect because this is not a contract-based claim. (E) is incorrect, because the overriding objective is not relevant here-it is a rule that the courts should deal with cases justly and at proportionate cost

39
Q

A man was riding his bicycle through a junction when he was struck by a car. The man sustained a broken hip and femur.

How long does the man have to file a claim against the driver?

15 years from date of accident.
10 years from date of accident.
 6 years from date of accident. 
3 years from date of accident. 
1 years from date of accident.
A

(D) The basic limitation period for personal injury claims is three years from the date of accrual, which is the date of the accident here. (A) reflects the longstop period for latent defects. (B) is not based on any of the main limitation periods. (C) is the limitation period for torts other than personal injury. (E) is the limitation period that applies to defamation claims

40
Q

A claimant was injured in a fight by the defendant. Due to their injuries, the claimant initiated a claim against the defendant, and wishes to rely on a statement made by a witness, who said that a bystander told him the defendant initiated the fight, but the witness did not believe the bystander. The bystander also stated that the claimant was not injured in the fight, which the witness knows to be untrue, as he saw the bruised claimant after the fight. The witness gave a statement including both of the bystander’s statements, and the witness will confirm the statement in court.

Are the statements made by the bystander to the witness hearsay evidence?

Yes, because the witness does not believe the statement about the claimant’s injury to be true.

No, because the witness will confirm their statement in court.

Yes, because the statements by the bystander were made otherwise than by a person while giving oral evidence in proceedings, which is tendered as evidence of matters stated.

No, because he knows the bystander’s statement about who initiated the fight to be untrue.

Yes, because the statements were not made to an official source such as a police officer.

A

C) The crucial part of the testimony has come from a person other than the person tendering it in evidence. Because both statements were made out of court by the bystander to the witness, both statements are hearsay. (A) is incorrect because there is no requirement for the person relaying hearsay evidence to believe its truth. The witness is conveying the fact of words spoken to them by another party. (B) is incorrect. Here, it is the statements of the bystander we are concerned about, not the witness’s statement. The bystander is not in court to testify, making their statements hearsay. (D) is incorrect because there is no requirement for the witness to believe or not believe the hearsay evidence. The witness is simply conveying what was told to them, which is hearsay. (E) is incorrect because a statement given to an ‘official’ source could still be hearsay if it falls within its definition.

41
Q

A greengrocer in London has a contractual dispute with an olive supplier in Spain. The greengrocer wants to commence proceedings against the Spanish supplier. The contract signed by both parties provides 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 greengrocer issues proceedings and now must arrange to serve upon the supplier at their address in Spain.

How long does the greengrocer have to serve the proceedings upon the Spanish supplier?

4 months
6 months
9 months
12 months
2 years
A

(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. In the UK, a claim must be served within four months of issuance of proceedings. It follows that (A), (C), (D), and (E) are incorrect.

42
Q

A claimant has issued proceedings against a defendant for breach of a contract made by deed. The claimant serves a Statement of Case on the defendant and the Statement does not include an allegation that the claimant provided consideration or that the contract was by deed.

What should the defence do in response?

File an acknowledgment of service and make an application to strike out the case.

File an acknowledgment of service and make an application for summary judgment.

File an acknowledgment of service and a defence pointing out the flaws in the claimant’s case.

Make a formal request for further information and await a reasonable time for a response.

Make a formal request for further information and file a defence.

A

(A) The defendant should file an acknowledgment of service and make an application to strike the case. If the claimant’s statement of case discloses no reasonable grounds for bringing the claim, the defendant’s best course of action is to make an application to strike. However, the defendant must also acknowledge service; otherwise, a default judgment may be entered against the defendant. Here, the claimant has not alleged that there was any consideration or deed to support the contract; a contract cannot exist without consideration or a deed to substitute for consideration. Therefore, an application to strike is appropriate. (B) is incorrect because summary judgment is used when a prima facie case is made (that is, when the claimant has alleged everything necessary to bring a case or defence) but the respondent believes that the claim or defence nonetheless has no real chance of success. Here, because the claimant’s Statement of Case did not include the element of consideration, an application to strike (and not an application for summary judgment) is appropriate. (C) is incorrect because filing a defence would prolong the litigation; an application to strike can terminate a baseless claim more quickly. (D) and (E) suffer the same problem as (C); they would prolong the litigation. Additionally, they do not indicate the necessity of filing an acknowledgment of service.

43
Q

A solicitor is representing the defendant in a road traffic accident claim. The claimant insists the defendant was speeding when the car the defendant was driving struck the claimant’s car, and that had the defendant not been speeding, he would have been able to stop his car before crashing into the claimant’s car. The defendant claims he was driving at the speed limit (30 miles per hour) when the claimant drove her car into the path of the defendant’s car.

The defendant’s Statement of Case states that he applied his brake immediately upon seeing the claimant’s car. The claimant would like to offer evidence from an eyewitness that the defendant’s car was traveling at about 50 miles per hour when the defendant applied his brake. The defendant would like to call an accident reconstruction specialist who will testify that based on the skid marks at the accident scene, the claimant’s car was travelling at 30 miles per hour when he applied his brake.

Which of the following statements best reflects the position on the lay eyewitness’s testimony?

The lay witness cannot testify as to speed because the lay witness’s testimony is contrary to the expert’s opinion and so obviously is inaccurate.

The lay witness cannot testify as to speed because that would be an opinion and only experts may testify as to their opinions.

The lay witness may testify as to the car’s speed because lay witnesses generally may give opinions as well as expert witnesses.

The lay witness may testify as to the car’s speed because the testimony relates to a fact observed by the lay witness.

The lay witness may testify as to the car’s speed because eyewitness testimony generally is more accurate than testimony from an expert’s reconstruction of the events.

A

(D) The lay witness may testify as to the car’s speed because the testimony relates to a fact observed by the lay witness. As a general rule, only experts may testify as to their opinions; lay witnesses may testify only to facts observed. However, speed is treated as an observable fact and so a lay witness may testify as to speed. (A) is incorrect both because speed is treated as an observable fact (making (B) incorrect as well) and because the expert vs nonexpert testimony regarding speed would affect the weight the court gives the testimony; the court would not bar the testimony of the lay witness. (C) is incorrect because although it states the correct conclusion, the rationale is incorrect; as indicated above, it is not true that a lay witness generally may testify as to opinion. (E) is incorrect because there is no such rule (favouring eyewitness testimony over expert testimony). Additionally, as a matter of practice, it generally is accepted that eyewitness testimony often is not very accurate.

44
Q

A manufacturing company issues proceedings against a building maintenance company for failure to provide services as agreed. The manufacturing company issued proceedings against the building maintenance company that were deemed served on 1 March. The proceedings did not include the Particulars of Claim. The manufacturing company’s solicitor served them later, with a deemed service date of 5 March.

How long does the maintenance company have to file an acknowledgment?

28 days from the deemed date of service of the Particulars of Claim.
28 days from the deemed date of service of the claim.
21 days from the deemed date of service of the Particulars of Claim.
14 days from the deemed date of service of the Particulars of Claim.
14 days from the deemed date of service of the claim.

A

(D) 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, (B) and (E) would be incorrect as they are measuring from that date of service of the claim and here the claim did not include the Particulars. (B) is also incorrect for stating the wrong time period. (A) and (C) 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.

45
Q

A solicitor is acting for a passenger who was injured when the taxi in which the passenger was riding skidded off the road and collided with a garden wall. The passenger alleges that the taxi driver was driving far too fast in light of the icy condition of the road that evening. The claim has a total value of £45,000, including a claim for personal injury valued at £20,000.

In which court should the solicitor start the proceedings?

The solicitor should commence proceedings in the High Court, Queen’s Bench Division.

The solicitor should commence proceedings in the High Court, Chancery Division.

The solicitor should commence proceedings in the County Court.

The solicitor should commence proceedings in the Small Claims Court.

The solicitor should commence proceedings in a specialist court.

A

(C) The solicitor should commence proceedings in the County Court based upon the value of the claim. A case involving personal injury should not issue out of the High Court unless the value of the claim exceeds £50,000. Otherwise, it should lie with the County Court. (A) is incorrect because the value is insufficient to issue in the High Court. (B) is incorrect because the Chancery Division of the High Court does not hear claims for personal injury. A personal injury claim sits with the Queen’s Bench Division. (D) is incorrect because ‘small claims court’ refers in fact to ‘small claims track’ and only applies to claims with a value of less that £10,000 and personal injury claims below £1,000. (E) is incorrect because there are no specialist courts that would be involved in the case management of a claim involving personal injury.

46
Q

Before she died, a woman hired an individual to establish a £1 million trust for her niece. Whilst at university, the niece became interested in investing and discovered that the manager of her trust fund had been negligent and had not properly been investing the funds in her trust account for a number of years. The niece estimates that had the funds properly been invested, the trust fund would contain an additional £175,000.

The niece instructs solicitors to issue a professional negligence claim against the trust fund manager. The niece attends university in Manchester. The trust fund manager is based in London.

In which court should the niece’s solicitors issue the claim?

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

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

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

The High Court of Justice, Chancery Division.

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

A

(C) The claim should be issued in the High Court of Justice, Manchester District Registry, Chancery Division. Generally, claims exceeding £100,000 are issued in High Court. The High Court has 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 attending university there, Manchester would be the best registry. And the Chancery Division of the High Court is the division that handles equity and trusts. (A), (B), and (E) are incorrect as professional negligence claims, particularly those which involve trusts, fall within the type of claim handled by the Chancery Division. (D) is incorrect as, if the client is attending university in Manchester, it is unlikely she will want to travel to London to attend the trial.

47
Q

A company’s issued share capital consists entirely of 1,000 ordinary £1 shares. The chairman of the board of directors owns 300 of the shares, the company secretary owns 200 shares, and five other shareholders own 100 shares each.

At a recent board meeting, the directors resolved to seek shareholder approval to amend the company’s articles. A meeting of shareholders is called to approve the amendment, and all shareholders attend.

For the shareholders to pass the resolution amending the articles, who must vote for the amendment if no one requested a poll vote?

The company’s chairman and secretary.
The company’s chairman, secretary, and one other shareholder.
The company’s chairman, secretary, and three other shareholders.
Any six of the company’s shareholders.
Not less than all of the shareholders.

A

D) Any six of the company’s shareholders must vote in favour of amending the articles. An amendment to a company’s articles is made by the shareholders through a special resolution. A special resolution must be approved by at least 75% of the votes of the members at the meeting. When a poll vote is not requested, each shareholder present has an equal vote, so the affirmative votes of any six would be needed (5/7ths being less than 75%). (A), (B), and (C) are incorrect as they don’t represent at least 75% of the shareholders present. (A) and (B) would be insufficient even if the vote were by a poll (that is, one vote per share) as the company’s chairman and secretary could cast only 500 votes (not even a majority and adding one other shareholder would bring them only to 600 votes instead of the 750 needed). (C) would be correct if the voting here were by poll, because the chairman, secretary, and three other shareholders have 800 of the 1,000 shares/votes. (E) is incorrect because an amendment of the articles does not require unanimous consent.

48
Q

An avid bowler wishes to open a chain of bowling alleys throughout the UK. He would like to incorporate a public limited company for this purpose, so that the company’s shares may be publicly traded.

What is the minimum nominal share capital required for a company to be able to register as a public limited company?

£10,000
£20,000
£30,000
£40,000
£50,000
A

(E) The minimum nominal share capital for a public limited company is £50,000 but only £12,500 must be paid up.

49
Q

A woman suffers injuries when she is struck by a car whilst crossing a street. The woman’s solicitors write to the driver’s insurers, indicating that the woman is intending to bring a claim. The solicitors 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 10 days later. Their response states that they are investigating the claim and will come back to the woman’s solicitors as soon as possible with confirmation of whether liability can be admitted.

How long do the insurers have to investigate the claim?

Three months.
Two months.
One month.
21 days.
14 days.
A

(A) 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. (If the defendant does not respond within 21 days, the claimant may then start proceedings.)

50
Q

An inventor developed a new machine that could produce computer chips. The inventor did not have enough money to begin building the machines, but to show prospective buyers his sincerity and belief in the viability of the machine, the inventor entered a lease for a manufacturing facility. The inventor then found investors to buy shares and created a company, giving the company the lease and invention in exchange for shares of the company.
Which of the following is correct as to the lease and contract the inventor entered before the company was formed?

The inventor is personally liable on the lease and contract unless the company assumes the obligations via an ovation.

The inventor was liable on the lease only until the articles of association were filed at Companies House.

The inventor was liable on the lease only until the certificate of incorporation was received.

If the company was never formed, the inventor would not have been liable on the lease.

If the company was never formed, the lessor would have to write off the debt because no corporate entity existed at the time debt was incurred.

A

The inventor is personally liable on the lease and contract unless the company assumes the obligations via an ovation.