Understand The Legal Concepts

Question 1

Powers of attorney

Answer 1

The enduring powers of attorney replaced the powers of attorney.

Question 2

Repclacements

Answer 2

• LPAs replaced enduring ones.
• If the donor or attorney is bankrupt it is abolished or if they divorce become sane
• health decisions are not made the same as financial ones
• you can’t use them for IHT purposes
  -office of public guardian is the place to register

Question 3

Contract law

Answer 3

• there must have power to contract and be acting in a good faith for their intention to
• consumer insurance act 2012 - consumers need to take reasonable care not to make a misrepresentation

Insurance act 2016 binds non consumer to make a fair presentation of risk

• insurance interest means that the person who is taking out life insurance must have a financial interest in who is being insured

Question 4

Contractual capacity

Answer 4

• people under the age of 18 have binding until repudiated, non binding and binding - employment and apprenticeships are binding but debts are not and rent is treated as until repudiated
• people with mental health condidktons can ratify their decisions when they are better.
• intoxicated people need to be Abel to know what they are doing. If they don’t then it’s not binding. They are able to agree when they are no longer intoxicated

Question 5

Laws of agency

Answer 5

• IFA acts on the client, the insurer acts in the client. The broker is part of the insurance firm and the insurance firm has to honour any mistakes.

Question 6

Property

Answer 6

• leasehold don’t own
• common hold is mixed And flats own their own bit
  
• harder to Margate a freehold there are usually 125 years or 99
• they are easier to make agreements on only need half the residents to agree with work
• joint tenancy they own it equally solely between
• shared are at local level they but sheared they then still pay rent they can always sell
• help to buy is for new homes
• the government gauntees proportion of the mortgage Over the amount of 80

Question 7

Insolvency

Answer 7

• IVA are agreements to pay debts where 75% of people owed money agree to this.
• an insolvency prescription set reviews the debtors finances yearly and an annual progress report is sent to creditors
• the debtor is notified when the IVA has ended
• they need permission for a mortgage
• if they fail to pay they can be made bankrupt by the debtors.
• for bankruptcy you need to apply for this and there has to be a debt of £5,000.00.
• you need to prove there is bo way of them paying.
• they can not take your tools.
• the official receiver takes control and appoints a trustee to run the estate and passes out the assets debts are prioritised.
• preferential includes pensions
• other debts are not paid if there are not enough funds then each creditor gets a percentage of the debts
• if you are a bankrupt it lasts for a year unless you are still earning and you can’t be a dirextor.
  -liquidation is not administration and taxes are prioritised for govenment