SQE1 FLK2 Practice Paper 4

A solicitor holds £200,000 in client account for Client A for a property purchase. The solicitor also holds £50,000 for Client B for an unrelated matter. The solicitor mistakenly sends £200,000 to a fraudster purporting to be the seller's solicitor in Client A's transaction. Which of the following best describes the position regarding Client B's money? A) Client B's money is unaffected because client money is held on trust for each individual client B) Client B's money may be at risk because the client account is now in deficit C) Client B can only recover their money if the solicitor has professional indemnity insurance D) The SRA Compensation Fund will automatically reimburse Client B

A testator's will contains the following clause: "I give my collection of first edition books to my friend Sarah." At the date of the will, the testator owned 50 first edition books. Before death, the testator sold 20 of them and acquired 10 new first edition books. At death, the collection comprises 40 books. How many books does Sarah receive? A) 50 books, because the will speaks from the date of execution B) 40 books, because a will speaks from the date of death as to property C) 30 books, being the original books minus those sold D) None, because the original collection no longer exists (ademption)

A freeholder grants a lease for 10 years. The lease contains a covenant by the tenant to keep the premises in good repair. The original tenant assigns the lease to an assignee with the landlord's consent. The assignee fails to carry out repairs. Against whom can the landlord enforce the repair covenant? A) Only the original tenant, because privity of contract continues B) Only the assignee, because the burden of the covenant passes on assignment C) Both the original tenant and the assignee, because the original tenant remains liable and the burden passes to the assignee under privity of estate D) Neither, because the covenant is personal to the original tenant

A defendant is charged with attempted murder. The prosecution must prove that the defendant had the necessary mens rea. What is the mens rea required for attempted murder? A) Intention to kill or intention to cause grievous bodily harm B) Intention to kill only C) Recklessness as to whether death would be caused D) Intention to cause some harm, however slight

A trust deed provides that the trustees shall hold the trust fund for "such charitable purposes as the trustees shall select." The trustees wish to make a distribution to a local hospital. One trustee argues that the trust is void for uncertainty. Is this correct? A) Yes, because "charitable purposes" is too vague to be enforceable B) No, because a trust for charitable purposes is valid even without specifying particular charities, and the court or Charity Commission can direct application if the trustees fail to act C) Yes, because the trustees have been given too wide a discretion D) No, but only if the hospital is registered with the Charity Commission

A solicitor is conducting a title investigation for a buyer of unregistered land. The solicitor discovers that a conveyance in the chain of title from 1975 was made by a sole surviving trustee of land. The conveyance contains a receipt for the purchase money signed by the trustee. Is the buyer protected? A) Yes, because the receipt in the conveyance is conclusive evidence of payment B) No, because a sole trustee of land (other than a trust corporation) cannot give a valid receipt for capital money, and the buyer may take subject to the beneficial interests C) Yes, because the conveyance is over 15 years old and falls outside the root of title D) No, because all conveyances by trustees require the consent of the beneficiaries

A person dies leaving a valid will that appoints an executor. The executor does not wish to act. What options are available to the executor? A) The executor must act because appointment in a will is mandatory and irrevocable B) The executor may renounce probate by filing a renunciation at the Probate Registry, provided they have not already intermeddled in the estate C) The executor may simply ignore the appointment and the court will appoint an administrator D) The executor may delegate all their duties to a solicitor and need not be personally involved

A solicitor receives instructions from two clients, husband and wife, to act for both of them in the purchase of a property. What conflict of interest considerations arise under the SRA Code of Conduct? A) The solicitor can never act for two buyers in the same transaction B) The solicitor may act for both provided there is no conflict of interest and, if there is a significant risk of a conflict, the conditions in paragraph 6.2 of the SRA Code are met C) The solicitor may act for both without any conditions because they are married D) The solicitor must obtain a conflict waiver from the SRA before acting

A mortgagee (lender) has a legal charge over registered land. The borrower defaults on mortgage repayments. The mortgagee wishes to exercise its power of sale. Under the Law of Property Act 1925, when does the power of sale BECOME EXERCISABLE (as opposed to merely arising)? A) Immediately upon creation of the mortgage B) When the mortgage money has become due (i.e., the legal date of redemption has passed) C) When one of the conditions in s103 LPA 1925 is satisfied: three months' notice requiring payment has expired without payment, interest is two months in arrears, or a term of the mortgage has been breached D) Only when the court grants an order for possession

A defendant is charged with burglary under s9(1)(a) of the Theft Act 1968. Which of the following must the prosecution prove? A) That the defendant entered a building as a trespasser and stole property therein B) That the defendant entered a building as a trespasser with intent to steal, inflict GBH, or commit criminal damage C) That the defendant was found on enclosed premises for an unlawful purpose D) That the defendant broke into a building and took property

A trust is created for "my children who attain the age of 25." The settlor has three children aged 10, 8, and 5. The trust fund generates income. Under s31 of the Trustee Act 1925 (as amended), what may the trustees do with the income before any child reaches 25? A) The trustees must accumulate all income until each child reaches 25 B) The trustees may apply the whole of the income for the maintenance, education, or benefit of each minor child, and must accumulate the balance of any unapplied income C) The trustees must distribute income equally among all three children immediately D) The trustees may only apply income for educational purposes

A buyer purchases a property at auction. At the fall of the hammer, the buyer signs a memorandum agreeing to purchase the property for £250,000 and pays a 10% deposit (£25,000). The buyer later discovers a structural defect not mentioned in the auction particulars. Can the buyer withdraw? A) Yes, because the structural defect amounts to a misrepresentation entitling the buyer to rescind B) No, because the binding contract was formed at the fall of the hammer and caveat emptor applies; the buyer should have surveyed before bidding C) Yes, because the seller has a duty to disclose all latent defects D) It depends on whether the defect was a patent or latent defect and whether the seller made any misrepresentations

A personal representative (PR) distributes the estate to the beneficiaries named in the will. Six months later, a person comes forward claiming to be an illegitimate child of the deceased entitled to a share under the Inheritance (Provision for Family and Dependants) Act 1975. The time limit for claims under the Act is six months from the date of the grant. Can the PR be held liable? A) No, because the six-month time limit has expired and the claim is statute-barred B) Yes, if the court grants permission to bring a late claim and the PR distributed without placing s27 notices C) No, because the PR has no obligation to consider potential claims under the 1975 Act D) Yes, the PR is automatically liable for distributing before 12 months from the grant

A defendant is charged with fraud by false representation under s2 of the Fraud Act 2006. The defendant sent an email pretending to be a bank employee and asked the victim for their bank details. The victim did not reply and no money was lost. Is the defendant guilty? A) No, because no loss was caused to the victim B) No, because the victim did not rely on the representation C) Yes, because fraud by false representation is a conduct crime — the offence is complete when the false representation is made with the required mens rea D) No, because the email was not received by the victim

A solicitor acts for a lender in a residential mortgage transaction. The solicitor also acts for the borrower. The solicitor discovers that the borrower has provided false income information to the lender in the mortgage application. What should the solicitor do? A) Continue acting for both parties but advise the borrower to correct the information B) Cease acting for both the lender and the borrower because a conflict of interest has arisen that cannot be resolved C) Report the borrower to the police for mortgage fraud D) Continue acting for the lender only and disclose the false information