Free SQE Mock Test 159 — 20 Questions + Full Answers
Solicitors Qualifying Examination · Trainee solicitors · SQE1 sits: Jan & Jul
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Applaa SQE Mock Test 159
applaa-sqe-mock-159.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A seller (Yasmine) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Noah), inducing them to buy it. The buyer subsequently discovers the fraud. Which of the following describes the remedies available under the Misrepresentation Act 1967?
- A.The contract is automatically void, and the seller must be prosecuted criminally.
- B.Rescission of the contract and/or damages under Section 2(1) of the Act.
- C.The buyer can only recover damages and has no right to rescind the contract under any circumstances.
- D.The contract is binding, and no remedy is available since the buyer should have checked the accounts (caveat emptor).
- E.The seller is required to perform specific performance of the turnover projection.
✓ Worked Explanation
Core Concept: Misrepresentation Act 1967 - Remedies The Misrepresentation Act 1967 classifies misrepresentation into three types (fraudulent, negligent, innocent) and provides different remedies for each. A negligent misrepresentation under Section 2(1) is the most commonly tested in SQE. Step-by-Step Resolution: 1. Identify the Type: A *negligent* false statement of fact made by Yasmine to induce Noah to buy. 2. Remedy Under Section 2(1): The innocent party (Noah) may: - Rescind the contrac
A claimant was injured when a defendant (Victoria), who was engaged in failing to secure scaffolding, caused an accident. The defendant admits they owed the claimant a duty of care and breached it, but argues that the claimant's own negligence contributed to the injury. Under the Law Reform (Contributory Negligence) Act 1945, what is the legal effect of contributory negligence?
- A.It acts as a complete defense, and the claimant receives no damages.
- B.It reduces the claimant's damages to the extent that is just and equitable, reflecting the claimant's share of responsibility.
- C.It has no effect on damages but requires the claimant to pay the defendant's legal costs.
- D.It shifts the burden of proof to the claimant to show that they took all reasonable precautions.
- E.It renders the claim null and void, requiring allocation to criminal arbitration.
✓ Worked Explanation
Core Concept: Contributory Negligence (Law Reform (Contributory Negligence) Act 1945) Contributory negligence is a partial defence - it does not defeat the claim entirely, but reduces the damages awarded to reflect the claimant's own responsibility for their injury. Step-by-Step Resolution: 1. Identify the Defence: Victoria admits negligence but argues the claimant also contributed to their own injury (e.g., not wearing a seatbelt, failing to follow safety instructions). 2. Legal Effect (LRCNA
A claimant was injured when a defendant (Wendy), who was engaged in failing to secure scaffolding, caused an accident. The defendant admits they owed the claimant a duty of care and breached it, but argues that the claimant's own negligence contributed to the injury. Under the Law Reform (Contributory Negligence) Act 1945, what is the legal effect of contributory negligence?
- A.It acts as a complete defense, and the claimant receives no damages.
- B.It reduces the claimant's damages to the extent that is just and equitable, reflecting the claimant's share of responsibility.
- C.It has no effect on damages but requires the claimant to pay the defendant's legal costs.
- D.It shifts the burden of proof to the claimant to show that they took all reasonable precautions.
- E.It renders the claim null and void, requiring allocation to criminal arbitration.
✓ Worked Explanation
Core Concept: Contributory Negligence (Law Reform (Contributory Negligence) Act 1945) Contributory negligence is a partial defence - it does not defeat the claim entirely, but reduces the damages awarded to reflect the claimant's own responsibility for their injury. Step-by-Step Resolution: 1. Identify the Defence: Wendy admits negligence but argues the claimant also contributed to their own injury (e.g., not wearing a seatbelt, failing to follow safety instructions). 2. Legal Effect (LRCNA 194
Prior to the formal incorporation of Epsilon Foods plc, a promoter (Julia) signed a contract 'on behalf of the company' to purchase machinery from a supplier. The company is now incorporated. Which of the following best describes the liability of Julia and the company on this pre-incorporation contract?
- A.The company is automatically bound by the contract upon incorporation, and the promoter is released.
- B.The contract is completely void and unenforceable by any party.
- C.The promoter is personally liable and entitled under the contract, subject to any agreement to the contrary, under Section 51 of the Companies Act 2006.
- D.The company and the promoter are jointly and severally liable automatically.
- E.The company can unilaterally ratify the contract without the supplier's agreement.
✓ Worked Explanation
Core Concept: Pre-Incorporation Contracts (Section 51 CA 2006) A company cannot be a party to a contract before it legally exists. When a promoter signs a contract 'on behalf of' an unformed company, Section 51 CA 2006 provides the default rule: the promoter is personally bound. Step-by-Step Resolution: 1. Legal Status Before Incorporation: Epsilon Foods plc had no legal existence when Julia signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes effe
A claimant was injured when a defendant (Yasmine), who was engaged in operating a crane without safety barriers, caused an accident. The defendant admits they owed the claimant a duty of care and breached it, but argues that the claimant's own negligence contributed to the injury. Under the Law Reform (Contributory Negligence) Act 1945, what is the legal effect of contributory negligence?
- A.It acts as a complete defense, and the claimant receives no damages.
- B.It reduces the claimant's damages to the extent that is just and equitable, reflecting the claimant's share of responsibility.
- C.It has no effect on damages but requires the claimant to pay the defendant's legal costs.
- D.It shifts the burden of proof to the claimant to show that they took all reasonable precautions.
- E.It renders the claim null and void, requiring allocation to criminal arbitration.
✓ Worked Explanation
Core Concept: Contributory Negligence (Law Reform (Contributory Negligence) Act 1945) Contributory negligence is a partial defence - it does not defeat the claim entirely, but reduces the damages awarded to reflect the claimant's own responsibility for their injury. Step-by-Step Resolution: 1. Identify the Defence: Yasmine admits negligence but argues the claimant also contributed to their own injury (e.g., not wearing a seatbelt, failing to follow safety instructions). 2. Legal Effect (LRCNA 1
A shopkeeper (Olivia) places a laptop in the shop window with a price tag of £350,000. A customer (Edward) enters the shop, places the cash on the counter, and demands to buy the item. The shopkeeper refuses to sell it. Is there a binding contract?
- A.Yes, because placing the item in the window was a unilateral offer that was accepted by the customer's cash payment.
- B.No, because the display of goods in a shop window is an invitation to treat, not an offer. Refusing to sell does not breach any contract (Fisher v Bell).
- C.Yes, because consumer protection laws force retailers to sell all displayed items automatically.
- D.No, because contracts for sales in shops require a written signed document.
- E.Yes, because the shopkeeper was silent when the customer entered, constituting acceptance.
✓ Worked Explanation
Core Concept: Invitation to Treat vs. Offer A binding contract requires a valid *offer* and *acceptance*. The display of goods in a shop window or on a shelf is an invitation to treat - an invitation for customers to make offers. It is fundamentally different from a legal offer, which can be accepted to form a contract. Step-by-Step Resolution: 1. What is an Invitation to Treat?: A display of goods with a price tag is not an offer - it is merely an expression of willingness to deal on those ter
A director of Aura Goods Ltd (a private company limited by shares) wants to allot new shares to a new investor (Nathan) to raise capital of £7,500. The company has only one class of ordinary shares. Under the Companies Act 2006, which of the following is correct regarding the director's authority to allot these shares?
- A.The director has automatic statutory authority to allot the shares without shareholder approval under Section 550, unless restricted by the articles.
- B.The director must always obtain authorization by ordinary resolution of the shareholders under Section 551.
- C.The director must obtain authorization by special resolution of the shareholders to allot any shares.
- D.The director requires the approval of the Board of Trade before alloting any class of shares.
- E.Authority is only required if the allotment would cause the company to exceed its authorised share capital as stated in the memorandum.
✓ Worked Explanation
Core Concept: Director's Authority to Allot Shares (Section 550 CA 2006) The Companies Act 2006 grants directors of private companies with a single class of shares a specific statutory power to allot shares of that class without requiring shareholder approval - unless the articles restrict this. Step-by-Step Resolution: 1. Identify Company Type: Aura Goods Ltd is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company have pow
A director of Zenith Retail Ltd (a private company limited by shares) wants to allot new shares to a new investor (Arthur) to raise capital of £22,000. The company has only one class of ordinary shares. Under the Companies Act 2006, which of the following is correct regarding the director's authority to allot these shares?
- A.The director has automatic statutory authority to allot the shares without shareholder approval under Section 550, unless restricted by the articles.
- B.The director must always obtain authorization by ordinary resolution of the shareholders under Section 551.
- C.The director must obtain authorization by special resolution of the shareholders to allot any shares.
- D.The director requires the approval of the Board of Trade before alloting any class of shares.
- E.Authority is only required if the allotment would cause the company to exceed its authorised share capital as stated in the memorandum.
✓ Worked Explanation
Core Concept: Director's Authority to Allot Shares (Section 550 CA 2006) The Companies Act 2006 grants directors of private companies with a single class of shares a specific statutory power to allot shares of that class without requiring shareholder approval - unless the articles restrict this. Step-by-Step Resolution: 1. Identify Company Type: Zenith Retail Ltd is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company have
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Paper Info
- Exam
- SQE
- Mock number
- 159 of 250
- Questions
- 20
- Format
- Multiple Choice (MCQ)
- Sections
- 1
- Audience
- Trainee solicitors
- Timing
- SQE1 sits: Jan & Jul
- Copyright
- Applaa Proprietary
Sections Covered
- FLK1
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