Free SQE Mock Test 185 — 20 Questions + Full Answers
Solicitors Qualifying Examination · Trainee solicitors · SQE1 sits: Jan & Jul
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Applaa SQE Mock Test 185
applaa-sqe-mock-185.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A seller (Mia) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Ryan), 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 Mia to induce Ryan to buy. 2. Remedy Under Section 2(1): The innocent party (Ryan) may: - Rescind the contract (r
Prior to the formal incorporation of Delta Builders Ltd, a promoter (Uma) 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 Uma 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: Delta Builders Ltd had no legal existence when Uma signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes effec
A claimant (Quinn) makes a valid CPR Part 36 settlement offer to the defendant (Victoria) of £35,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £40,250. 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. Quinn's Offer: £35,000 - a valid Part 36 offer. 2. Victoria's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Quinn wins £40,250 - which *exceeds* the Part 36 of
Julia offered to sell a piece of machinery to Harry for £500. Harry replied: 'I accept your offer, but I will pay £450.' Julia did not respond. Two days later, Harry wrote to Julia saying: 'I accept your original offer of £500.' Is there a binding contract between Julia and Harry?
- 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: Julia offers the piece of machinery for £500. 2. Counter-Offer: Harry replies with £450 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the original
A shopkeeper (Zoe) places a vintage watch in the shop window with a price tag of £250,000. A customer (Nora) 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 shopkeeper (Charlie) places a designer coat in the shop window with a price tag of £75,000. A customer (Fredrick) 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 shopkeeper (Edward) places a laptop in the shop window with a price tag of £220,000. A customer (Charlie) 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 (Katelyn) has applied for summary judgment against a defendant (Emma) 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
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Paper Info
- Exam
- SQE
- Mock number
- 185 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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