Free SQE Mock Test 216 — 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 216
applaa-sqe-mock-216.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A seller (Victor) negligently makes a false statement of fact regarding the turnover of a business to a buyer (Grace), 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 Victor to induce Grace to buy. 2. Remedy Under Section 2(1): The innocent party (Grace) may: - Rescind the contra
Matthew offered to sell a agricultural tractor to Oliver for £45,000. Oliver replied: 'I accept your offer, but I will pay £40,500.' Matthew did not respond. Two days later, Oliver wrote to Matthew saying: 'I accept your original offer of £45,000.' Is there a binding contract between Matthew and Oliver?
- 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- B.Yes, because the original offer remained open and had not been revoked by the offeror.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: Matthew offers the agricultural tractor for £45,000. 2. Counter-Offer: Oliver replies with £40,500 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills t
A claimant (Benjamin) makes a valid CPR Part 36 settlement offer to the defendant (Evelyn) of £18,500. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £21,275. 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. Benjamin's Offer: £18,500 - a valid Part 36 offer. 2. Evelyn's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Benjamin wins £21,275 - which *exceeds* the Part 3
Prior to the formal incorporation of Aura Goods Ltd, a promoter (Yasmine) 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 Yasmine 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: Aura Goods Ltd had no legal existence when Yasmine signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes effec
Prior to the formal incorporation of Beacon Solutions LLP, a promoter (Lucas) 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 Lucas 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: Beacon Solutions LLP had no legal existence when Lucas signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes e
An employee of Falcon Security Ltd negligently injures a customer (Quinn) while driving a company delivery van to make a scheduled delivery. The customer sues Falcon Security Ltd. What is the legal doctrine that allows the employer to be held liable, and what is the test?
- A.Res Ipsa Loquitur; requires showing the van was in a defective condition.
- B.Vicarious liability; requires showing that the employee committed a tort in the course of their employment.
- C.Strict liability; requires showing the employer acted with malicious intent.
- D.Privity of liability; requires a signed agreement between the employer and the customer.
- E.Contributory liability; requires allocating the claim to the Multi-Track.
✓ Worked Explanation
Core Concept: Vicarious Liability Vicarious liability makes an employer strictly liable for torts committed by their employee, where the tort occurs in the 'course of employment'. It is a form of secondary liability - the employer is liable even without their own fault. Step-by-Step Resolution: 1. Identify the Employer-Employee Relationship: The delivery driver is an employee of Falcon Security Ltd (not an independent contractor). 2. Course of Employment Test: Was the tort committed while perfo
A director of Alpha Trading Ltd (a private company limited by shares) wants to allot new shares to a new investor (Mila) to raise capital of £35,000. 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: Alpha Trading Ltd is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company have
A builder (Zachary) contractually agreed to construct a wall for a customer (Samuel) 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
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Paper Info
- Exam
- SQE
- Mock number
- 216 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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