Miscellaneous 4

Question 1

What are extra legal sources of revenue law?

Answer 1

HMRC manuals
Statements of practice
Concessions

Question 2

What is the definition of mens rea?

Answer 2

A guilty mind

Question 3

True or false, a company is a data subject for data protection purposes?

Answer 3

False

Question 4

True or false, a person’s political opinions are classified as sensitive personal data?

Answer 4

True

Question 5

In common law, what are the rights of ownership?

Answer 5

Limited

Question 6

In English law, property is acquired by persons as joint tenants where the “four unities” are present at the same time. True or false, unity of time means that the interest of each co-owner must end at the same time?

Answer 6

False

Question 7

In English law, property is acquired by persons as joint tenants where the “four unities” are present at the same time. True or false, every co-owner is entitled to every part of a co-owned property?

Answer 7

True

Question 8

True or false, those in a tenancy in common can sell their share of the property without the other tenant’s agreement?

Answer 8

True

Question 9

True or false, those in a tenancy in common cannot convert their ownership into a joint tenancy?

Answer 9

True

Question 10

What is the degree to which parties may mutually agree the terms of the contract between them limited by?

Answer 10

The use of standard form contracts
The presence of implied terms by virtue of statute
The restriction of the effectiveness of certain terms because of statute

Question 11

What is the term used to describe when the owner of a property contracts with another person to offer to sell that property to that other person first, and the owner decides to sell?

Answer 11

A right of pre-emption

Question 12

True or false, in a contract of hire of chattels, or lease, the hirer is under a duty to pay rent to the owner?

Answer 12

True

Question 13

True or false, the description of an employment/self-employment contract will always be ignored if is doubtful what rights and duties the parties wish to provide?

Answer 13

False

Question 14

True or false, an office holder is taxed in the same way as an employee?

Answer 14

True

Question 15

True or false, a partnership agreement may be verbal?

Answer 15

True

Question 16

True or false, a written partnership agreement may override the terms of the Partnership Act 1890?

Answer 16

True

Question 17

How many designated members must an LLP have?

Answer 17

2

Question 18

True or false, a partnership an exist if a business is not yet being carried on?

Answer 18

False

Question 19

True or false, limited partners may not withdraw their capital?

Answer 19

True

Question 20

True or false, limited partners can dissolve the partnership by notice?

Answer 20

False

Question 21

True or false, executors can act before probate is granted?

Answer 21

True

Question 22

True or false, it is possible for a person to die partially intestate?

Answer 22

True

Question 23

True or false, property held as a joint tenant passes under the intestacy rules?

Answer 23

False

Question 24

What are demonstrative
and pecuniary legacies?

Answer 24

Pecuniary - gift of money
Demonstrative - gift of money payable out of a specific fund or account

Question 25

True or false, the terms of a trust can only be varied before the trust is completely constituted?

Answer 25

False

Question 26

What does a bare trust enable the owner of a property to do?

Answer 26

To conceal beneficial interest in it behind a nominee

Question 27

In deciding whether to exercise their discretion to make payments to a beneficiary, what must trustees take into account?

Answer 27

The trustees must make reasonable provision and must take into account the availability of income from other sources

Question 28

A private company is buying back some of its own shares using a permissible capital payment.

The Articles permit this and there are sufficient available profits.

What must be done and in what order?

Answer 28

1. A directors statement must be issued with a supporting auditors report
2. A special resolution must be passed
3. A notice must be published in the London Gazette
4. Payment must be made for the shares

Question 29

What are advantages of holding loan capital rather than share capital?

Answer 29

Loans may be secured on the company’s assets

Creditors’ rights are usually exempt from CGT

Question 30

What is required to dismiss a director?

Answer 30

An ordinary resolution with 28 days notice

Question 31

True or false, a foreign company with a UK permanent establishment will not need to register with companies house?

Answer 31

False

Question 32

Vermifix plc had shares with a nominal value of £2.

The company has converted these into lower-value shares, with one £2 share becoming four 50p shares.

What is this process called?

Answer 32

Sub-division

Question 33

True or false, a disclosure warranty is given before the sale of a company is completed?

Answer 33

True

Question 34

True or false, a disclosure warranty allows the purchaser of a company to bring a future claim under the relevant warranty?

Answer 34

False

Question 35

True or false, warranties and indemnities are more extensive for a share sale?

Answer 35

True

Question 36

What is a warranty?

Answer 36

A specific statement of fact which is incorporated into the sale agreement. If there is a breach of warranty, the court might award damages to put the purchaser the same position as if there had not been a breach

Question 37

What is an indemnity?

Answer 37

Indemnities are a promise by the vendor to make payments to the company or to the purchaser, if certain liabilities arise.