MOCK QUESTIONS I GOT WRONG Flashcards
contractual term vs representation
- seller has no knowledge of stuff
- buyer has a lot of knowledge
the buyer’s superior knowledge and seller’s lack of knowledge then it is likely going to be a mere representation rather than a term
undue influence
mother paid the average value of a property to her daughter
daughter then claimed there was undue influence from mother
Undue influence will not be presumed in this scenario.
For Priya to rescind the agreement, she must provide evidence that her relationship with her mother was one of trust and confidence, and that Ms Sharma exercised improper influence as a result.
Given the fair purchase price agreed, the court is unlikely to view this transaction as one arising from undue influence.
equitable remedies
agreement 1: limited edition print bought for £500 when normally it is £650
agreement 2: bought a rare authenticated sketch for £50,000
buyer then gives lots of negative reviews as the sales dont happen
neither sales go ahead- what are the remedies?
For Agreement 1, specific performance is unlikely to be granted as damages would provide an adequate remedy. For Agreement 2, specific performance is likely to be granted as damages would not provide an adequate remedy. The court, in exercising its discretion regarding equitable remedies, will consider Mr Harrison’s conduct in posting negative reviews online.
A business owner wrote to a prospective buyer offering to sell her 10 bottles of lemonade at £10 per bottle. The prospective buyer was throwing a birthday party for her 50th birthday and wanted the lemonade to give to her guests, so she replied one day later confirming her order. The business owner received this confirmation the day after it was sent. However, on the same day that she sent the order confirmation, The prospective buyer changed her mind and sent to cancel the order.
Which of the following best describes the legal position in this case?
prospective buyer is unlikely to be bound to pay for the order because they have a right to cancel
restrictive covenants in employment contracts
- Prohibits the employee from establishing a competing business within a 35-mile radius of Artisan Glass Ltd for 18 years
- Prevents the employee from working for any of Artisan Glass Ltd’s top five competitors for six years after leaving the company.
Which of the following statements most accurately describes the legal position regarding these restrictive covenants?
- The initial presumption for restrictive covenants is that they are void.
- The burden of proof lies with the employer to demonstrate that the covenant is reasonable. - For the glassblowers, the first clause is likely reasonable in terms of distance but unreasonable in duration.
- The second clause is probably unenforceable, but a clause preventing the glassblowers from exploiting their insider knowledge might be upheld.
- For the administrative assistants, a restrictive covenant is unlikely to be enforceable.
Silverbrook Technologies Ltd, a tech start-up, has its accounting reference date set as 30 June. The company initiated operations in September, resulting in its first accounting period concluding on 30 June of the following year. During this initial accounting period, Silverbrook Technologies Ltd generated a trading profit of £120,000 in May from a significant software licensing deal. The company made no capital gains or losses during this first accounting period.
In its second accounting period, ending on 30 June of the subsequent year, Silverbrook Technologies Ltd suffered a trading loss of £80,000. The company neither made a capital gain nor incurred a capital loss during this second accounting period.
Can Silverbrook Technologies Ltd offset the £80,000 trading loss from the second accounting period against the £120,000 trading profit from the first accounting period?
Yes, because the trading profit occurred within the 12-month period ending immediately before the accounting period in which the trading loss was incurred.
An LLP intends to lease office space for £750,000 over a five-year term. The lease agreement will be executed as a simple contract by the LLP. The LLP does not have a common seal or a designated company secretary.
Which of the following most accurately describes the minimum execution requirements for the lease agreement to be legally binding on the LLP?
The lease agreement must be executed by the LLP through a person acting under its authority, whether express or implied.
A local brewery, Hopshire Ales Ltd, has granted a fixed charge over its brewery building to Barclays Bank, and a floating charge over its brewing equipment to HSBC. Both charges were properly executed and registered at Companies House, with the fixed charge being created first. The brewery is operating profitably and has not defaulted on any of its loan agreements.
Which of the following statements most accurately describes Hopshire Ales Ltd’s ability to dispose of these assets?
Hopshire Ales Ltd requires Barclays Bank’s consent to sell the brewery building but may freely sell the brewing equipment until the floating charge crystallises.
A client, who operates as a limited company, acquired a small publishing house (including a leasehold office space) five years ago for £250,000. The client has decided to pursue other interests and has sold the business for £450,000. They have not made any previous capital disposals.
Which of the following can the client deduct from the sale price to calculate their chargeable gain?
The acquisition cost, solicitor’s fees of £5,000 for the sale, £6,000 in legal fees for the sale, and £3,500 in legal fees for the purchase.
Sarah, James and Oliver run a small consultancy firm as partners. Sarah and James are keen to bring in their colleague Rachel as a new partner to expand the business. However, Oliver is hesitant about this idea. The partners have been operating without a formal partnership agreement and have never discussed procedures for introducing new partners.
What legal advice should be given to Sarah and James regarding their proposal to include Rachel in the partnership?
Due to the absence of any agreed terms regarding the admission of new partners, Rachel can only join the partnership if Sarah, James and Oliver unanimously agree.
Eight years ago, a family-owned bakery granted a floating charge over all its assets to a local credit union. Five years later, the bakery executed a debenture in favour of a private investor, creating another floating charge over its entire business. The investor knew about the earlier charge, but it hadn’t been recorded at Companies House. Both charges were properly executed, and the investor’s charge was duly registered. The bakery has now entered insolvent liquidation.
Which statement most accurately reflects the legal position?
The investor’s charge takes precedence as the credit union’s charge is invalid against both the liquidator and the investor
You are a solicitor at Wilson & Co, a medium-sized law firm specializing in corporate law. Your client, TechInnovate Ltd, is a promising tech startup preparing for its first round of venture capital funding. During a meeting with the CEO, Sarah Johnson, she reveals that the company’s financial projections, which will be presented to potential investors, have been significantly inflated. Sarah explains that this is common practice in the industry to attract investors and asks you to review the investor pitch deck containing these inflated figures.
Based on the SRA Code of Conduct and your professional obligations, what is the most appropriate course of action?
Advise Sarah about the legal and ethical implications of presenting inflated financial projections, explaining the potential consequences. If the company refuses to correct the projections, consider whether you need to cease acting for them.
characteristics of public limited companies
Public companies may be incorporated by filing Form IN01, must have a minimum of two directors, can only be limited by shares and must have a company secretary.
when can you claim for Pure economic loss in a negligent case
when there is a special relationship between you and defendant meaning there is a situation where the defendant assumed responsibility towards you
what is a quia timet injunction?
A “quia timet” injunction is prohibitory and is granted in anticipation of the commission of a tort (before the vineyard owner has suffered any damage).
The claimant and their civil partner were leaving the registry office after finalising their dissolution. They had been separated for 18 months and living apart. The dissolution process had been amicable, with both parties agreeing to remain friends.
As they exited the building, they decided to walk to a nearby café for a farewell coffee. While crossing a busy intersection, the claimant witnessed a lorry collide with their former partner. The impact threw their ex-partner several metres, causing severe injuries. The claimant rushed to their ex-partner’s side, arriving moments after the collision. Despite emergency services’ efforts, the ex-partner died at the scene. The claimant subsequently developed severe anxiety and depression.
The defendant is the lorry driver whose negligence caused the fatal accident.
Which argument is the defendant most likely to raise successfully to dispute owing a duty of care to the claimant?
The defendant will likely contest the proximity of relationship, citing the recent dissolution to argue against a presumption of love and affection.
As a result of the accident the Claimant fractured his leg and was off work for a period of six months.
The Claimant is a pilot and is paid £10,000.00 net per month.
In relation to the claim for loss of earnings:
- The Claimant’s employer made an ex gratia payment to the Claimant of £2,500.00 net per month
- The Claimant has an insurance policy which he paid for himself privately and which pays him the sum of £2,500.00 net per month towards his loss of earnings
- The Claimant has another insurance policy which is provided by his employer without contribution by the Claimant and which pays him the sum of £2,500.00 net per month towards his loss of earnings
Assuming medical evidence supports his claim which of the following best reflects the monthly net sum the Claimant is likely to receive from the Defendant for his loss of earnings claim?
£7,500
can a neighbour bring about legal proceedings against a HRA breach?
- A. No, because only a victim of the alleged violation can bring an action, and the neighbour is not a victim.
mischief rule
The judge will examine the defect in the common law that Parliament intended to remedy by enacting the statute.
A solicitor is instructed by a group of investors to assist in their acquisition of all issued shares in a private limited company that operates a chain of organic food stores. The solicitor provides advice on the share purchase process and aids in the preparation and negotiation of all requisite documentation. Neither the solicitor nor their firm holds authorisation from the Financial Conduct Authority to conduct any ‘regulated activity’ as defined in the Financial Services and Markets Act 2000 and its associated statutory instruments.
Has the solicitor contravened the general prohibition against carrying out a regulated activity?
No, because an exclusion applies if the transaction involves at least 50% of the voting shares in the company.
A solicitor is approached by a potential buyer interested in acquiring a property. The buyer asks the solicitor to represent her in the purchase. The solicitor previously advised the property’s current owner during a local council planning dispute, and as a result, possesses information that could be valuable to the buyer. The owner’s case concluded three weeks ago, and the solicitor is not presently in communication with the owner.
The firm conducts its standard conflict check, which yields no issues.
According to the rules of professional conduct, is the solicitor permitted to represent the buyer in this property purchase?
No, as the solicitor would be obligated to breach their duty of confidentiality to the property owner by providing information to the buyer.
A newly qualified solicitor is discussing different fee arrangements with her supervisor. They are considering entering into a Conditional Fee Agreement (CFA) with a client for an employment tribunal case.
Which of the following correctly describes how the solicitor’s success fee would be determined under a CFA if the case is won?
The success fee must be a percentage increase of the base fee that would be payable if there were no CFA, subject to a statutory cap.
A solicitor is preparing to meet a new client who wants to create a will and establish a trust for their children. The matter appears to be relatively straightforward. The solicitor is considering whether to propose an hourly rate or a fixed fee for this service.
Which of the following correctly describes the most appropriate fee arrangement for this situation?
A fixed fee, as it provides cost certainty for both the client and the solicitor, likely making it more appealing to the client.
During a moot court competition, two undergraduate law students are debating the role of the judiciary in law-making.
Which of the following statements most accurately reflects the position of courts in England and Wales regarding the development of law?
Courts have the authority to evolve the common law through their judgments.
