Free SQE Mock Test 198 — 20 Questions + Full Answers
Solicitors Qualifying Examination · Trainee solicitors · SQE1 sits: Jan & Jul
Sections: FLK1 · Applaa proprietary paper — free to download and print
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Applaa SQE Mock Test 198
applaa-sqe-mock-198.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A director of Vanguard Industries plc (a private company limited by shares) wants to allot new shares to a new investor (Jack) 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: 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 claimant (Lucas) makes a valid CPR Part 36 settlement offer to the defendant (Fiona) of £350,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £402,499. 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. Lucas's Offer: £350,000 - a valid Part 36 offer. 2. Fiona's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Lucas wins £402,499 - which *exceeds* the Part 36 off
A driver (Victoria) crashes into a pedestrian (Isabella) who is crossing the street, causing physical injuries. To establish negligence, the claimant must show that the defendant owed them a duty of care. How does the court establish if a duty of care exists for physical damage caused by positive actions?
- A.By applying the three-stage Caparo test including fair, just, and reasonable criteria in every case.
- B.By finding that the case falls within an established duty category (such as road users to other road users) where a duty is automatically owed (Robinson v Chief Constable of West Yorkshire).
- C.By checking if the defendant signed a voluntary duty registration form.
- D.By proving the defendant intended to cause physical harm.
- E.By allocating the claim to the Fast Track under CPR guidelines.
✓ Worked Explanation
Core Concept: Duty of Care - Established Categories (Robinson v Chief Constable) Not every case requires a full Caparo analysis. The Supreme Court in Robinson v Chief Constable of West Yorkshire Police [2018] confirmed that where a case falls into an *established duty category*, the duty is owed as a matter of precedent. Step-by-Step Resolution: 1. Is this an Established Category?: A driver ('Victoria') causing physical injury to a pedestrian (Isabella) through a positive act clearly falls with
A claimant (Grace) makes a valid CPR Part 36 settlement offer to the defendant (Evelyn) of £250,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £287,500. 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. Grace's Offer: £250,000 - a valid Part 36 offer. 2. Evelyn's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Grace wins £287,500 - which *exceeds* the Part 36 of
A claimant (Mia) makes a valid CPR Part 36 settlement offer to the defendant (Emma) of £150,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £172,500. 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. Mia's Offer: £150,000 - a valid Part 36 offer. 2. Emma's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Mia wins £172,500 - which *exceeds* the Part 36 offer. T
A claimant was injured when a defendant (Oliver), who was engaged in delivering expired pharmaceuticals, 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: Oliver 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 19
A shopkeeper (Arthur) places a laptop in the shop window with a price tag of £180,000. A customer (William) 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 seller (Penelope) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Ian), 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 Penelope to induce Ian to buy. 2. Remedy Under Section 2(1): The innocent party (Ian) may: - Rescind the contract
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Paper Info
- Exam
- SQE
- Mock number
- 198 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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