Free SQE Mock Test 160 — 20 Questions + Full Answers
Solicitors Qualifying Examination · Trainee solicitors · SQE1 sits: Jan & Jul
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Applaa SQE Mock Test 160
applaa-sqe-mock-160.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A claimant (Zachary) has brought an action against a defendant (Isabella) in the County Court for breach of contract, claiming £350,000 in damages. The defendant has filed a defense. In accordance with the Civil Procedure Rules (CPR), which track will this claim be allocated to?
- A.Small Claims Track
- B.Fast Track
- C.Intermediate Track
- D.Multi-Track
- E.Commercial Court Track
✓ Worked Explanation
Core Concept: CPR Track Allocation The Civil Procedure Rules (CPR) allocate civil claims to one of four procedural tracks based primarily on *financial value* (and sometimes complexity). Each track has different procedural rules, costs caps, and hearing formats. Step-by-Step Resolution: 1. Identify the Claim Value: The claim is for £350,000. 2. Apply the Track Thresholds: - Small Claims Track: £10,000 (for most claims; £1,000 for personal injury/housing disrepair) - Fast Track: > £10
A shopkeeper (Zoe) places a designer coat in the shop window with a price tag of £45,000. A customer (Emma) 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 claimant (Thomas) makes a valid CPR Part 36 settlement offer to the defendant (Harry) of £5,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £5,750. What is the primary costs consequence under Part 36?
- A.The claimant must pay the defendant's costs on the indemnity basis.
- B.The defendant must pay the claimant's costs on the indemnity basis, plus interest on those costs, from the expiry of the relevant offer period.
- C.The court will split the trial costs equally between both parties.
- D.All costs recovery is capped at the Small Claims Track limit.
- E.The defendant is immune to costs penalties because they defended the claim in good faith.
✓ Worked Explanation
Core Concept: CPR Part 36 Offers and Cost Consequences A Part 36 offer is a formal settlement mechanism under CPR. When a claimant's Part 36 offer is beaten at trial (i.e., judgment exceeds the offer), the defendant faces automatic cost penalties designed to encourage early settlement. Step-by-Step Resolution: 1. Thomas's Offer: £5,000 - a valid Part 36 offer. 2. Harry's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Thomas wins £5,750 - which *exceeds* the Part 36 offer
A claimant (Noah) has applied for summary judgment against a defendant (Bob) under CPR Part 24. What is the test that the court must apply to determine whether summary judgment should be granted?
- A.The claimant must prove the case beyond all reasonable doubt.
- B.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 value of the claim must be less than £10,000.
- D.The defendant has failed to acknowledge service of the claim form within 14 days.
- E.The dispute involves questions of international law.
✓ Worked Explanation
Core Concept: Summary Judgment under CPR Part 24 Summary judgment allows a party to obtain judgment *without a full trial* where the opposing party's case has no real prospect of success. It is a cost-effective tool that avoids unnecessary litigation. Step-by-Step Resolution: 1. Who Can Apply: Either the claimant or defendant can apply for summary judgment under CPR Part 24.2. 2. The Test: The court will grant summary judgment if: - The defendant has no real prospect of successfully defendin
Victoria offered to sell a yacht to Sophia for £20,000. Sophia replied: 'I accept your offer, but I will pay £18,000.' Victoria did not respond. Two days later, Sophia wrote to Victoria saying: 'I accept your original offer of £20,000.' Is there a binding contract between Victoria and Sophia?
- A.Yes, because the second letter constituted a valid acceptance of the original offer.
- B.Yes, because the original offer remained open and had not been revoked by the offeror.
- C.No, because the counter-offer of the lower price killed the original offer, meaning it could no longer be accepted.
- D.No, because a contract for sale of goods must be made in writing signed by both parties.
- E.Yes, because the offeror's silence on the counter-offer constituted acceptance of the lower price.
✓ Worked Explanation
Core Concept: Counter-Offer and the Death of the Original Offer A counter-offer is a rejection of the original offer combined with a new offer on different terms. Once a counter-offer is made, the original offer is extinguished - it cannot be revived or accepted later. Step-by-Step Resolution: 1. Original Offer: Victoria offers the yacht for £20,000. 2. Counter-Offer: Sophia replies with £18,000 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the original of
A seller (Olivia) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Kate), 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 Olivia to induce Kate to buy. 2. Remedy Under Section 2(1): The innocent party (Kate) may: - Rescind the contract
A director of Vanguard Industries plc (a private company limited by shares) wants to allot new shares to a new investor (Wendy) to raise capital of £95,000. 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: Vanguard Industries plc is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company
A director of Vanguard Industries plc (a private company limited by shares) wants to allot new shares to a new investor (Katelyn) to raise capital of £350,000. 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: Vanguard Industries plc is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company
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Paper Info
- Exam
- SQE
- Mock number
- 160 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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