SQE1 FLK2 Practice Paper 5

A solicitor operates a client account that includes money held for multiple clients. At the end of the accounting period, the solicitor performs a reconciliation and discovers a surplus of £3,500 in the client account that cannot be attributed to any client. What should the solicitor do? A) Transfer the surplus to the business account as it does not belong to any client B) Investigate the surplus promptly, and if it cannot be attributed after reasonable enquiries, pay it to the Law Society as unclaimed client money C) Leave the surplus in the client account indefinitely until a client claims it D) Distribute the surplus equally among all current clients

A testator executes a will that includes the following clause: "I give my residuary estate to my children in equal shares, but if any child predeceases me leaving issue, that child's share shall pass to their issue per stirpes." The testator has three children: A, B, and C. Child A predeceases the testator, leaving two children (grandchildren X and Y). What is the distribution of the residuary estate? A) B and C each receive one-half; X and Y receive nothing B) B and C each receive one-third; X and Y each receive one-sixth C) X and Y each receive one-third; B and C share the remaining third D) B, C, X, and Y each receive one-quarter

A tenant holds a 25-year commercial lease with a break clause at year 15. The lease was granted in 2015 and is protected by the Landlord and Tenant Act 1954 Part II. The lease term expires in 2040. The tenant does not wish to exercise the break clause. As the contractual term nears expiry, what happens under the 1954 Act? A) The lease terminates automatically at the end of the contractual term B) The lease continues automatically on the same terms by virtue of s24 of the 1954 Act until terminated in accordance with the Act C) The tenant must apply to the court for a new lease at least 12 months before the lease expires D) The landlord may simply refuse to renew and the tenant must vacate

A defendant is charged with an offence triable either way. The case is listed for a plea before venue hearing at the magistrates' court. The defendant indicates a not guilty plea. The magistrates must decide whether to accept jurisdiction or send the case to the Crown Court. Which of the following is a factor the magistrates should consider under the allocation guidelines? A) Whether the defendant has a previous criminal record B) Whether the offence is so serious that the magistrates' sentencing powers are insufficient C) Whether the defendant prefers trial by jury D) Whether legal aid has been granted

A beneficiary of a trust discovers that one of two trustees has been investing trust funds in speculative cryptocurrency ventures in breach of the duty of care under s1 Trustee Act 2000. The other trustee was unaware of the investments. The trust has suffered a loss of £50,000. The innocent trustee seeks relief from liability. Under s61 of the Trustee Act 1925, can the court relieve the innocent trustee? A) No, because both trustees are automatically jointly and severally liable regardless of fault B) Yes, if the court is satisfied that the trustee acted honestly and reasonably and ought fairly to be excused C) Yes, but only if the trustee can prove they had no knowledge of the breach D) No, because s61 only applies to technical breaches, not financial losses

A buyer's solicitor is investigating title to registered land. The property register indicates that the title is qualified. What does a qualified title mean? A) The title is absolute but subject to certain specified rights that existed at the time of first registration B) The title is guaranteed by the Land Registry except in respect of a specified defect or qualification noted on the register C) The title will become absolute after 12 years of registration D) The title cannot be mortgaged until the qualification is removed

A solicitor acting for the executors of an estate discovers that the deceased had a joint bank account with their adult daughter. The account balance at death was £80,000. How should this asset be treated for estate administration purposes? A) The entire £80,000 forms part of the estate and must be distributed under the will B) The £80,000 passes to the daughter by survivorship and does not form part of the estate for succession purposes, though it may be relevant for IHT C) Half of the balance (£40,000) forms part of the estate and the other half belongs to the daughter D) The entire balance must be frozen until the executors obtain a grant of probate

A defendant pleads guilty to an offence of causing death by dangerous driving. The offence carries a maximum sentence of life imprisonment. The defendant has no previous convictions and is 22 years old. Before sentencing, the court orders a pre-sentence report. Which of the following sentencing purposes under s57 of the Sentencing Act 2020 is the court MOST likely to prioritise? A) The reform and rehabilitation of the offender B) The punishment of the offender C) The protection of the public D) The reduction of crime through deterrence

A proprietary estoppel claim arises when a neighbour (A) builds an extension on their property in reliance on an assurance from the adjoining landowner (B) that B would grant A a right of way across B's land. B later refuses to grant the right of way. For A to succeed in a claim of proprietary estoppel, which three elements must be established? A) A written agreement, consideration, and registration of the interest B) An assurance or representation by B, reliance on that assurance by A, and detriment suffered by A as a result of the reliance C) A contractual licence, part performance, and unconscionability D) An express grant, valuable consideration, and compliance with s2 Law of Property (Miscellaneous Provisions) Act 1989

A trust deed provides that the trust fund of £500,000 shall be held for "the employees of ABC Ltd." There are currently 150 employees. No further details are given about the terms of the trust. Which of the following best describes the trust? A) A valid fixed trust with the fund divided equally among all 150 employees B) An invalid trust because the objects are uncertain — employees may join or leave C) A valid discretionary trust if the trustees can say with certainty whether any given person is or is not within the class D) A valid purpose trust because it benefits the company's employees

A solicitor is acting for a seller in a leasehold property transaction. The lease requires the landlord's consent to assign, such consent not to be unreasonably withheld. The landlord has not responded to the request for consent for over 28 days. Under the Landlord and Tenant Act 1988, what is the position? A) The landlord's silence is deemed to be consent after 28 days B) The landlord owes a statutory duty to give consent within a reasonable time, and the tenant may claim damages for breach of this duty C) The tenant must apply to the court for a declaration that consent has been unreasonably withheld D) The assignment cannot proceed until the landlord gives written consent

A person dies leaving a valid will appointing two executors. One executor predeceases the testator. The surviving executor applies for a grant of probate. Must the surviving executor appoint a replacement before obtaining the grant? A) Yes, there must always be two executors to obtain a grant of probate B) No, a single executor can obtain a grant of probate and administer the estate alone C) Yes, unless the estate is valued at less than £25,000 D) No, but the court will appoint an additional executor to act alongside the surviving one

A defendant is stopped by the police while driving. A breath test reveals they are over the prescribed alcohol limit. At the police station, the defendant provides an evidential breath specimen showing 42 microgrammes of alcohol in 100 millilitres of breath (the prescribed limit is 35). Under s8 of the Road Traffic Act 1988, does the defendant have the right to replace the breath specimen with a blood or urine sample? A) No, the defendant has no right to a replacement specimen B) Yes, because the breath reading is below 50 microgrammes, the defendant must be offered the option to replace the breath specimen with a blood or urine sample C) Yes, but only if the defendant can show a medical reason why breath testing is unreliable D) No, because the reading exceeds the prescribed limit, the breath specimen is conclusive

A solicitor acts for a buyer purchasing a new-build property from a developer. The developer provides a new home warranty (e.g., NHBC Buildmark). During the conveyancing process, the solicitor discovers that the property will not be connected to mains drainage and will instead use a private sewage treatment plant. What additional searches or enquiries should the solicitor raise? A) No additional searches are required because the new home warranty covers drainage issues B) The solicitor should raise enquiries about the maintenance responsibilities, any necessary environmental permits, and the cost of maintaining the system C) The solicitor should only check whether the system has planning permission D) The solicitor need not raise any enquiries because drainage is a matter for the buyer's surveyor

A trust fund consists of a portfolio of investments worth £1 million. The trust deed authorises the trustees to invest in any asset class. One trustee proposes investing £500,000 (50% of the fund) in a single technology start-up company. The other trustee objects. Under the Trustee Act 2000, what standard investment criteria must the trustees consider? A) Trustees need only consider whether the investment will produce the highest possible return B) Trustees must have regard to the suitability of the proposed investment and the need for diversification, as appropriate to the circumstances of the trust C) Trustees may invest in any asset they choose because the trust deed gives them unrestricted investment powers D) Trustees must invest only in assets recommended by an independent financial adviser