SQE1 FLK1 Practice Paper 4

A company enters into a contract with a supplier. The contract was negotiated and signed by a senior employee who had no express authority from the board to enter into contracts of this type. The supplier was unaware of this limitation. The contract is worth £500,000. Can the company avoid the contract on the basis of the employee's lack of authority? A) Yes, because the employee had no actual authority and the contract is void B) No, because the employee had ostensible (apparent) authority and the supplier acted in good faith without notice of the limitation C) Yes, because only directors can bind the company in contracts over £100,000 D) No, because all employees automatically have authority to bind the company

A claimant issues proceedings for breach of contract. During standard disclosure, the defendant fails to disclose a key email that supports the claimant's case. The claimant later discovers the email's existence. Which of the following remedies is available to the claimant? A) The claimant can apply for specific disclosure under CPR 31.12 requiring the defendant to disclose the email B) The claimant has no remedy because the disclosure stage has passed C) The claimant must start fresh proceedings D) The claimant can only rely on the documents already disclosed

A company director takes a corporate opportunity for themselves without disclosing it to the board. The director argues that the company could not have taken the opportunity because it lacked the financial resources. Does this defence succeed? A) Yes, because the company could not have exploited the opportunity B) No, because a director must account for profits made from corporate opportunities regardless of whether the company could have taken the opportunity C) Yes, because the director acted reasonably in the circumstances D) No, but only if the director acted in bad faith

A claimant suffers psychiatric injury after witnessing a horrific accident in which their child is killed. The claimant was not physically endangered. To succeed in a negligence claim as a secondary victim, which of the following requirements must the claimant satisfy? A) The claimant must prove they were in the zone of physical danger B) The claimant must satisfy the Alcock control mechanisms: close tie of love and affection, proximity in time and space to the accident, and perception by their own unaided senses C) The claimant need only prove that psychiatric injury was a foreseeable consequence of the defendant's negligence D) The claimant must prove they suffered a recognised physical injury in addition to psychiatric harm

A buyer and seller enter into a contract for the sale of 100 tonnes of wheat, delivery in 3 months. Before delivery, the market price of wheat increases significantly. The seller refuses to deliver, anticipating they can sell to another buyer at a higher price. The buyer wishes to claim damages for the seller's anticipatory breach. Which of the following is correct? A) The buyer must wait until the delivery date before taking any action B) The buyer can accept the anticipatory breach immediately, treat the contract as at an end, and sue for damages C) The buyer cannot claim damages because the seller has not yet breached the contract D) The buyer must apply to the court for specific performance as the primary remedy

Parliament enacts a statute that conflicts with a retained EU regulation. A dispute arises about which takes priority. Under the current constitutional position post-Brexit, which takes priority? A) The retained EU regulation takes priority because of the supremacy principle B) The new Act of Parliament takes priority because the principle of supremacy does not apply to post-Brexit legislation C) Neither takes priority — the court must refer the matter to the European Court of Justice D) The retained EU regulation can only be overridden by a two-thirds majority in Parliament

A partner in a general partnership retires from the firm. After retirement, the firm incurs a new debt to a creditor who was unaware of the retirement. Is the retired partner liable for this debt? A) No, because retirement automatically ends all liability B) Yes, the retired partner may be liable to the creditor unless proper notice of retirement was given to the creditor C) Yes, because partners are liable for all firm debts regardless of when they were incurred D) No, because the creditor should have checked the partnership register

A claimant brings a professional negligence claim against their solicitor for failing to issue proceedings within the limitation period, causing the underlying claim to become time-barred. The underlying claim had a 60% chance of success. How should the court assess damages? A) The claimant recovers the full value of the underlying claim because the solicitor's negligence caused the loss B) The claimant recovers 60% of the value of the underlying claim, reflecting the chance of success in the lost litigation C) The claimant recovers nothing because they cannot prove on the balance of probabilities that they would have won D) The claimant recovers only the costs wasted on the solicitor's fees

A contract between a retailer and a manufacturer contains a clause excluding liability for consequential losses. A consumer purchases goods from the retailer. Can the manufacturer rely on the exclusion clause against the consumer? A) Yes, because the exclusion clause is part of the manufacturer's standard terms B) No, because the consumer is not a party to the contract between the retailer and manufacturer and has no rights under it C) Yes, if the consumer was aware of the clause at the time of purchase D) No, because exclusion clauses are always void in consumer contracts

An employee is made redundant after 5 years of continuous service. Their weekly pay is £600. They are aged 35. What is the correct calculation of their statutory redundancy payment? A) 5 weeks' pay at £600 = £3,000 B) 5 weeks' pay at the statutory cap (currently £643 per week) = £3,215 C) 7.5 weeks' pay because each year over age 22 counts as 1.5 weeks D) 10 weeks' pay at £600 = £6,000

A council passes a bylaw that prohibits all public gatherings in a park. A group of protestors challenge the bylaw arguing it violates their Article 11 (freedom of assembly) rights under the ECHR. Which of the following approaches should the court take? A) The court must strike down the bylaw as it violates Article 11 B) The court should first consider whether the bylaw can be read and given effect in a way compatible with Article 11 under section 3 HRA 1998, and if not, may grant other appropriate relief C) The court cannot consider ECHR rights when reviewing subordinate legislation D) Article 11 rights are absolute and cannot be restricted by any domestic legislation

A claimant makes an application for summary judgment under CPR Part 24 against the defendant. Which of the following correctly states the test the court must apply? A) The court must be satisfied that the claimant's case is stronger than the defendant's B) The court must be satisfied that the defendant has no real prospect of successfully defending the claim and there is no other compelling reason why the case should be disposed of at trial C) The court must be satisfied beyond reasonable doubt that the claimant will succeed D) The court can only grant summary judgment if both parties consent

A company's board of directors votes to allot new shares to existing shareholders on a pro rata basis. Under the Companies Act 2006, which of the following is correct regarding the directors' authority to allot shares? A) Directors have an inherent power to allot shares at any time without restriction B) Directors must be authorised to allot shares either by the articles or by ordinary resolution of the shareholders under section 551 C) Directors can only allot shares with the unanimous consent of all existing shareholders D) The allotment of shares is a matter for the company secretary, not the directors

A landowner negligently starts a fire that spreads to neighbouring properties, destroying two houses. The fire also damages a car belonging to a visitor who was parked on one of the neighbouring properties. Can the visitor claim against the landowner in negligence for damage to their car? A) No, because the visitor has no proprietary interest in the neighbouring land B) Yes, because the landowner owed a duty of care to anyone whose property was foreseeably at risk from the fire C) No, because the visitor was a trespasser on the neighbouring property D) Yes, but only if the visitor can prove the landowner intended to damage the car

A claimant successfully obtains a freezing injunction (formerly Mareva injunction) against a defendant. Which of the following best describes the effect of the order? A) It transfers ownership of the defendant's assets to the claimant B) It prevents the defendant from disposing of or dealing with their assets up to a specified value, pending trial C) It gives the claimant a proprietary claim over the defendant's assets D) It only prevents the defendant from removing assets from England and Wales