Free SQE Mock Test 2 — 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 2
applaa-sqe-mock-2.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A claimant (Mila) makes a valid CPR Part 36 settlement offer to the defendant (Sophia) of £12,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £13,799. 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. Mila's Offer: £12,000 - a valid Part 36 offer. 2. Sophia's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Mila wins £13,799 - which *exceeds* the Part 36 offer.
A director of Aura Goods Ltd is considering entering into a contract on behalf of the company where they have a personal interest. Under Section 177 of the Companies Act 2006, what is the director's primary duty regarding this conflict?
- A.They must resign immediately from the board of directors.
- B.They must declare the nature and extent of their interest to the other directors before the transaction is entered into.
- C.They must obtain a court order approving the transaction.
- D.They must transfer their shares in the company to a blind trust.
- E.They must obtain unanimous shareholder consent at a general meeting.
✓ Worked Explanation
Core Concept: Director's Duty to Declare Interest (Section 177 CA 2006) Directors must manage conflicts of interest transparently. Section 177 imposes a *duty to declare* any direct or indirect personal interest in a proposed transaction before the company enters into it - protecting the company from undisclosed self-dealing. Step-by-Step Resolution: 1. Identify the Conflict: The director has a personal interest in the transaction being considered by the board of Aura Goods Ltd. 2. Apply Sectio
The directors of Zephyr Services LLP wish to allot new ordinary shares for cash. The company's articles do not exclude pre-emption rights. Which of the following resolutions of the shareholders is required to disapply the statutory pre-emption rights under the Companies Act 2006?
- A.An ordinary resolution with a simple majority (over 50%).
- B.A special resolution with a 75% majority of votes cast.
- C.A written resolution signed by 100% of the shareholders.
- D.An extraordinary resolution requiring a 90% majority.
- E.No resolution is required; the directors can disapply pre-emption rights by a board resolution.
✓ Worked Explanation
Core Concept: Disapplying Pre-Emption Rights (Sections 570/571 CA 2006) Pre-emption rights protect existing shareholders from dilution by giving them the right to purchase newly allotted shares in proportion to their holdings. To *disapply* these statutory rights requires a special resolution (75% majority). Step-by-Step Resolution: 1. Understand Pre-Emption Rights: Under Section 561 CA 2006, when directors allot equity securities for cash, existing shareholders have a right of first refusal (p
Thomas offered to sell a commercial warehouse to Diana for £20,000. Diana replied: 'I accept your offer, but I will pay £18,000.' Thomas did not respond. Two days later, Diana wrote to Thomas saying: 'I accept your original offer of £20,000.' Is there a binding contract between Thomas and Diana?
- 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: Thomas offers the commercial warehouse for £20,000. 2. Counter-Offer: Diana replies with £18,000 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the
A seller (Harry) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Emma), 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 Harry to induce Emma to buy. 2. Remedy Under Section 2(1): The innocent party (Emma) may: - Rescind the contract
A builder (Henry) contractually agreed to construct a wall for a customer (Julia) for £5,000. Halfway through the job, the builder states they cannot finish unless the customer pays an extra £1,000. The customer agrees. After completion, the customer refuses to pay the extra £1,000. Under Williams v Roffey Bros, is the promise to pay the extra £1,000 binding?
- A.No, because performing an existing contractual duty can never be good consideration.
- B.Yes, if the customer obtained a practical benefit (such as avoiding a penalty clause to a third party) and there was no economic duress.
- C.No, because a promise to pay more must be approved by the County Court under CPR regulations.
- D.Yes, because oral contracts are automatically binding regardless of consideration.
- E.No, because it violates Section 52 of the Law of Property Act 1925.
✓ Worked Explanation
Core Concept: Consideration and Practical Benefit (Williams v Roffey Bros) The traditional rule (Stilk v Myrick) held that performing an existing contractual duty cannot be good consideration. Williams v Roffey Bros [1990] modified this rule: performing an existing duty CAN be valid consideration if the promisee obtains a 'practical benefit'. Step-by-Step Resolution: 1. Traditional Rule: A builder promising to finish what they're already contractually bound to do provides nothing new - no consi
In a judicial review action, the High Court finds that a section of an Act of Parliament is incompatible with a right protected by the European Convention on Human Rights (ECHR). What is the legal effect of a Declaration of Incompatibility under Section 4 of the Human Rights Act 1998?
- A.The Act of Parliament is immediately struck down and ceases to be law.
- B.It does not affect the validity, continuing operation, or enforcement of the provision, but alerts Parliament to amend the law.
- C.The case is referred automatically to the European Court of Justice in Luxembourg.
- D.The monarch must immediately dissolve Parliament and call an election.
- E.The claimant is automatically awarded £120,000 in damages.
✓ Worked Explanation
Core Concept: Declaration of Incompatibility (Section 4 Human Rights Act 1998) Under the Human Rights Act 1998, UK courts can interpret legislation compatibly with Convention rights where possible (Section 3). Where this is not possible, higher courts can issue a Declaration of Incompatibility - but crucially, this does NOT invalidate the law. Step-by-Step Resolution: 1. Section 3 - Interpret First: Courts must read legislation *as far as possible* compatibly with Convention rights. This is a s
A claimant was injured when a defendant (Ryan), 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: Ryan 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 1945
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Paper Info
- Exam
- SQE
- Mock number
- 2 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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