QLTS Flashcards
Do shares in partnerships attract Inheritance Tax?
Value of partnership share will not attract IHT if owned for longer than 2 years.
If a trial is conducted where a former employee is suing your firm for dismissing him based on sexuality - will SRA have any regard to the outcome of the trial in respect of the firm’s operations and compliance with the SRA Code of Conduct?
SRA will likely regard the firm as having breached its obligations in equality and diversity by virtue of the trial outcome per se, although this is not definite.
Are coins ‘goods’ for the purposes of EU law?
Coins which are legal tender are not goods.
What is the standing requirement in judicial review proceedings for HRA cases?
The ‘victim’ test.
*Note: this is narrower than the ‘sufficient interest’ test.
If buyer makes a purchase of a car after he is told verbally that it is first hand, but it turns out it is not and that term is not expressly included in the written contract, what is the legal position?
Consumer Rights Act 2015, any information which is then taken into account by the consumer when entering into a contract, is deemed to be part of the contract.
Woman enters into contract with company’s directors knowing that it exceeds the articles of association of the company. IS the contract binding?
s40 Companies Act: person dealing with the company is entitled to assume that directors have full power to bind company, even if they are aware of limitation on the powers of the directors.
Solicitor accepts money from client but transfers into personal account instead of business account, which of the following best states solicitor’s criminal liability under Fraud Act 2006?
Fraud by abuse of position.
Which of the following are zero-rated for VAT:
- Children’s clothes
- Children’s books
- Hot takeaways and home deliveries
The first two. Food is usually zero-rated except for hot takeaways and home deliveries and food eaten in premises.
When will a grant of mortgage trigger first registration?
grant of a mortgage over an unregistered leasehold estate with more than 7 years left to run will trigger compulsory first registration.
What is the method by which the legality of an act of EU institution can be challenged?
Action for annulment
*Note: not preliminary ruling as that is for validity of European law
Property owner employed renowned architect to renovate barn, architect contracted electrician to do rewiring. Postman entered property to deliver letter and was electrocuted. What is the property owners’ liability under Occupier’s Liability Act 1957?
Not liable because damage is by negligence of an independent contractor. Property owner was reasonable in hiring a renowned architect so no duty to supervise.
What does Govt minister have to do in respect of HRA and ECHR when executing bill’s throgh Parliament?
He must make written statement (note: must not may) that he considers bill to be compatible or that he is unable to make such statement but wishes to proceed with the bill anyway.
When does following, as opposed to tracing, occur?
Following can occur where legal title to trust property has not passed and it has not been mixed with any other property. If it has been mixed (e.g. paid into bank account containing other money), then it cannot be followed, only traced.
Charitable trust wishes to purchase building to be used as office space for itself, but property market is in decline and the value will likely decline. Trust instrument contains no provisions relating to land. What can be done?
s8 of Trustee Act 2000 gives trustees an unrestricted power to acquire freehold or leasehold land as an investment, for occupation by the beneficiary or for any other reason.
Woman falls behind in mortgage payments and bank wishes to exercise power of sale. At what point is the right to redeem the mortgage lost?
When the mortgagee enters into a contract for sale of the property.
Man and wife agree to kill a man by luring him to woods and then shooting him. Woman’s car breaks down on the day. Are they guilty of conspiracy?
s2(2) of Criminal Law Act 1977 provides that spousal agreements do not amount to statutory conspiracy. HOWEVER, if there is a third party to the agreement, then they can, together, be guilty of conspiracy.
How do partnerships split capital and profits?
in the absence of a partnership agreement, they will share capital and profits equally.
Sole trustee wants to go travelling for a year so appoints a man in her place under a power of attorney. Is this valid?
No, although possible for trustee to delegate their office to an attorney under s25 of Trustee Act 1925, only possible where the donee of the power will not be the only trustee in office.
Do retiring partner believes that once retired, he will have no liability for debts incurred whilst working for partnership. Is he right?
No. Retiring partners remain liable for debts incurred whilst they were partner, unless the retiring partner is discharged from any existing liabilities by an agreement to that effect between himself and members of the firm and creditors.
If the name of a partnership does not contain all the members, what is the legal position regarding the details of all partners on (a) letterheads (b) at each place of business and (c) to anyone who asks?
The names must be displayed in all of the cases.
Proprietor of a property holds on to long lease with 860 years left to run. She has charged by way of legal mortgage over the leasehold estate to a bank. She wishes to grant sublease for two years over the property. Can she?
Yes. s99 LPA 1925 gives mortgagor statutory right to grant leases over mortgaged property which will bind the mortgagor and their mortgagee, but this is frequently excluded by the mortgage deed.
How can the lack of horizontal direct effect of directives be side-stepped?
Through indirect effect where Member State must construe national legislation in line with provisions with EU law.
Note: indirect effect can only be used where the Member State has failed to implement a directive at all, or where it has failed to implement a directive correctly.
Can a solicitor of a non-FCA authorised firm advise a corporate client on the buying of shares of a public company?
Yes you can as advising a corporate client to buy shares in a public company is an exception to the rule that you should not advise a client to buy shares traded on an investment exchange.
Which of the following will be deducted from estate of deceased when calculating IHT?
- Mortgage; credit card bill; income tax bill; funeral expenses; solicitors costs for will
Everything except the solicitors costs.
Company is seeking annulment of the EC’s decision by making an application to the Registry of the General Court, in respect of bringing an action against the Commission. What is the time limit for bringing such an action?
Two months from the relevant day i.e. from publication of measure in question, or of its notification to the claimant or from the day it came to or should have come to the claimant’s attention
What does novus actus interveniens mean? Directness of (i) damage (ii) remoteness (iii) foreseeability?
Remoteness
Within what time frame does a shareholder get to see a company’s annual reports?
Within 5 months of the end of Financial year
How to enforce a gift to an unincorporated association?
Contract holding theory: an outright gift to the members as JTs subject to their own contractual obligations.
Man enters jewellery shop and pretends to be someone else to buy jewellery by fake cheque then sells jewellery to somebody else. Is the contract void for mistake?
Contract is not void for mistake and innocent third party who is now in possession is entitled to retain them.
What is the dualist theory in relation to how international law is implemented into domestic law?
It is the doctrine of transformation, where international law only forms part of domestic law if accepted as such by statute or by judicial decisions.
Is past consideration sufficient to make a valid agreement?
No, past consideration is not good consideration.
If husband owned partnership share for 18 months, then died and passed to wife who held for 6 months then died and passed to daughter. Will Business relief be available?
Yes, business relief available if held for more than 2 years. If the person who inherits is spouse or civil partner, the time they held it will count towards the period of holding.
If several undertakings reach an agreement the effect of which leads to an appreciable restriction of competition, what is the effect at law?
It becomes automatically void at law (note: not just unenforceable)
What does the principle of proportionality entail?
It is the fair balance between the demands of the general interest of the community and the requirements of the protection of the individual’s convention rights.
Can an non-EU national continue to reside in EU country after divorce?
Yes, provided the marriage lasted 3 years including 1 year in the member state.
Within how many days of conviction must notice be given to Magistrate’s court and to prosecution that one wishes to appeal his conviction?
Within 21 days of sentence being passed.
How can a trust be varied?
With the consent of the beneficiaries, but if the beneficiaries are minors, with the consent of the court.
Woman who is freehold owner grants a lease for 99 years over the ground floor flat in favour of her friend. The registration of the lease fails, is the friend protected?
The grant of a lease for more than 7 years is a registrable disposition for the purposes of the Land Registration Act 2002. Therefore until the lease is registered, the legal estate that it creates cannot pass to lessee and friend only has benefit of a contract to grant the lease, which is in the form of a estate contract. Such an interest is protected by way of notice in the charges register of the burdened title.
What is the threshold for relying on the ‘incidental’ exemption for professional firms when your firm made 450k from investment business activity out of 1,000,000 profits?
The threshold is 50%, so you might be able to rely on incidental exemption.
Is a legal interest necessary to bring a claim in private nuisance?
Yes, normally only those who have a legal interest in the land affected (i.e. freehold or tenancy) can sue in private nuisance. Not mere relative or visitor.
At which courts can you seek a declaration of incompatibility?
High Courts and above (Court of Appeal and Supreme Court)
Company would like to appoint director, and director wants guaranteed employment for at least 5 years, what are the regulations regarding guaranteed employment?
Director’s service contracts cannot guarantee employment for more than 2 years unless members of the company approves longer period.
Can the Freedom of Expression in be limited for foreigners?
yes it can, but other member states nationals are not considered foreigners.
What effect do ECtHR judgements have on national courts and governments?
Not binding on national courts but binding on the affected governments.
What is a power of appointment under a trust?
power of appointment gives the trustees the ability to pay capital assets from the trust to a person/persons of their choosing.
Is total destruction of goods necessary for contract to be frustrated?
No, mere destruction of merchantable quality of the goods is sufficient.
What is the threshold for EU provisions against cartels and collusions to bite?
the individual company’s market share must be greater than 15%.
What is the offence of aggravated trespass?
it is committed when a person trespasses on land when a lawful activity is taking place on that land and does anything intending to intimidate, obstruct or disrupt that activity.
What is the threshold for claims of personal injury for claims to be commenced in the high court?
above 50,000 pounds.
What is the standard of care for professional professing to have a special skill?
The standard is that of the ordinary skilled person exercising and professing to have that skill.
How often can income tax be paid?
In two instalments, one during the tax year and one following the tax year.
How are treaties ratified and by whom?
They are ratified by the government under the royal prerogative.
What is the difference between an injunction and a super injunction?
It is a prohibition on the communication or disclosure of the existence of the order and the proceedings
How are recorders appointed?
By the Queen, on the advice of the Lord Chancellor.
How much notice is required of a public assembly?
Notice of assembly not normally required.
If a firm is authorised by FCA to carry out certain regulated activities but they offer investment advice for which they do not have authorisation, is there a criminal offence committed?
No offence committed. Firms who act outside scope of authority will not have committed an offence.
