Mock Exam Notes

Question 1

When does bill come into force?

Answer 1

Midnight of day it receives royal assent

Unless:
- commencement date is specified in Act
- commencement order is made by government minister

Question 2

Buyers of company relied on accounts that turn out to be false. Can negligent misstatement claim be made by buyer of company against the target companies accounts?

Answer 2

No
- cannot bring claim against accountants for who negligently audited annual financial statement
- as accountants only owe duty of care to company not general public

Question 3

What are guarantees and indemnities?

Answer 3

guarantee
- secondary obligation that supports a primary obligation

indemnity
- primary obligation to pay on occurrence of particular event

Question 4

When should you bring action for private nuisance vs public nuisance

Answer 4

Private
- if injury to person or persons property

Public
- no need to show legal interest in land

Question 5

If the AoA have a provision giving weighted voting rights (per share) when will this take priority?

Answer 5

Always (at least when it is provided for in the term)

Question 6

When does the chair have the casting vote according to Model Articles?

Answer 6

NOT
- for companies incorporated in or after Oct 2009

Question 7

If an employee breaches a company rule not allowing non-employees to help them with job and the person is injured will the company be liable?

Answer 7

Yes

Question 8

When is someone entitled to criminal legal aid?

Answer 8

Means Test
- looks at income and capital
- includes spouses resources unless they have contrary interest in dispute

Merits Test
- is case serious enough

Question 9

What is a Tomlin order?

Answer 9

Consent order where terms are not in body of the order but:
- in an attached schedule
- settlement agreement; or
- if necessary a document which is identifiable but entirely separate (and can be confidential)

Question 10

What should you do if you want to enforce Part 36 offer but want to keep terms secret?

Answer 10

Draft a towline order to be filled at court and a separate settlement agreement which is marked as confidential

Question 11

If representing client in transaction and you suddenly cannot contact them to ascertain instructions, can you proceed with transaction?

Answer 11

Yes BUT must take action that are in clients best interest

Question 12

When is restrain of trade clause likely to be unenforceable?

Answer 12

must go no further than necessary to protect the legitimate interest of the party relying on it

Reluctance to impose restriction on persons ability to earn a living

Scope
- covering most of city held void

Time
- 1 year held void

Question 13

When can a solicitor make unsolicited approaches to potential clients?

Answer 13

Can
- current/form clients
- business (representatives of business)

Can’t
- members of public

Question 14

Is the supreme court bound by its own decisions?

Answer 14

Is bound but has power to depart from them if:
- it appears right to do so

Question 15

how many designed members does an LLP need?

Answer 15

At least 2

Question 16

When must a barrister take a case?

Answer 16

Must accept any work:
- in a field in which they profess to practice; and
- at a court at which the normally arrest; and
- if it is at their usual rate

Question 17

When can claim for dependance and for what?

Answer 17

Who
- spouse, former spouse or person living as spouse for 2 years
- partner or treated as parent
- child or treated as child in relation to any marriage
- any brother, sister, uncle or aunt (and their issue)

When
- financial support
- services

Question 18

Does defendant have to pay judgement debt if applying for appeal?

Answer 18

Yes
- unless proceedings HAVE BEEN stayed

Question 19

What is the duomatic principle

Answer 19

anything the members of the company can do by formal resolution in a general meeting, they can also do informally if all of them assent to it

Question 20

What oaths must judges, magistrates and tribunal member make?

Answer 20

Must make:
1. oath of allegiance to monarch
2. judicial oath

Question 21

Which companies cannot apply for statutory moratorium period?

Answer 21

1. financial services firms
   - bank
   - insurance company
2. companies party to capital markets arrangement of over £10m

Question 22

What must law firms do when conducting any insurance distribution activities?

Answer 22

• reasonable steps to ensure that contract is suitable for client
• adapt the details of it according to the complexity of the contract and individual circumstances of the client
• provided client with written demands and needs statement
• contract just be consistent with demands and needs statement

Question 23

What is the effect of non-compliance with an unless order?

Answer 23

Claim is automatically struck out if the order says so
- same goes for any sanction given in order

Although can apply for relief

Question 23

When must an enhanced CDD be performed?

Answer 23

• where transaction is complex
• where transaction is unusually large; or
• where there is an unusual pattern of transaction or transactions have no apparent economic or legal purpose

Question 24

A negligently damages power line to B’s factory.

B’s furnace shuts down. £100 of metal currency smelting is lost. B expected to make a £100 profit from the metal destroyed. B also loses profits (£400) from 4 subsequent melts they are unable to do whilst power is down.

What can be recovered?

Answer 24

Only
- £100 for metal destroyed
- £100 for profit on destroyed metal
(as the profit is consequential loss to damage of the metal)

The opportunity cost of subsequent melts is pure economic loss

NOTE
- may have been able to recover all if B had owned the electric cable

Question 25

What is the condition to be a salaried member of LLP? What is the effect?

Answer 25

Condition
- their contribution to LLP must be less than 25% of expected disguised salary payable by LLP

Member of an LLP and treated as an employee for income tax purposes.