Free SQE Mock Test 24 — 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 24
applaa-sqe-mock-24.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A shopkeeper (Olivia) places a vintage watch in the shop window with a price tag of £7,500. A customer (Lucas) 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 business wants to apply for an interim injunction to prevent a competitor (Katelyn) from using its trade secrets. According to the guidelines in American Cyanamid Co v Ethicon Ltd, what is the first question the court must consider?
- A.Whether the applicant is willing to pay the court fees.
- B.Whether there is a serious question to be tried.
- C.Whether the defendant has a criminal record.
- D.Whether damages would be an adequate remedy for either party.
- E.Whether the trial can be completed within 6 months.
✓ Worked Explanation
Core Concept: American Cyanamid Test for Interim Injunctions An interim injunction is a temporary court order preventing a party from doing (or requiring them to do) something, pending a full trial. The American Cyanamid test provides a structured three-stage analysis. Step-by-Step Resolution: 1. Stage 1 - Is there a Serious Question to be Tried?: First, establish that the claim is not frivolous or vexatious. There must be a *genuine dispute with arguable merit*. If yes, proceed to stage 2. 2.
Prior to the formal incorporation of Pinnacle Ventures Ltd, a promoter (Amelia) 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 Amelia 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: Pinnacle Ventures Ltd had no legal existence when Amelia signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes
A director of Aura Goods Ltd (a private company limited by shares) wants to allot new shares to a new investor (Zachary) to raise capital of £7,500. 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: Aura Goods Ltd is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a company have pow
A customer (Georgia) is walking down a warehouse aisle when a heavy crate falls from a high shelf and injures them. The claimant has no evidence of what exactly caused the crate to fall. Can the claimant rely on the doctrine of 'Res Ipsa Loquitur'?
- A.No, because the claimant must prove the exact negligent act to bring a claim.
- B.Yes, if the thing causing the accident was under the sole control of the defendant, and the accident is one that does not occur in the ordinary course of things without negligence.
- C.No, because Res Ipsa Loquitur only applies to breach of contract claims.
- D.Yes, but the claimant's damages are automatically capped at £10,000.
- E.No, unless the defendant has already been convicted in a criminal court.
✓ Worked Explanation
Core Concept: Res Ipsa Loquitur ('The Thing Speaks for Itself') Res ipsa loquitur is an evidentiary doctrine that *shifts the evidential burden* to the defendant to provide an explanation for an accident. It assists claimants who cannot identify the exact cause of an accident but can show the circumstances make negligence the most probable explanation. Step-by-Step Resolution: 1. Three Requirements (Scott v London and St Katherine Docks [1865]): - The *thing* causing harm was under the defen
Prior to the formal incorporation of Beacon Solutions LLP, a promoter (Victoria) 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 Victoria 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 Victoria signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract take
A director of Pinnacle Ventures 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 Pinnacle Ventures Ltd. 2. Apply
A claimant (Fredrick) makes a valid CPR Part 36 settlement offer to the defendant (Zachary) 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. Fredrick's Offer: £350,000 - a valid Part 36 offer. 2. Zachary's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Fredrick wins £402,499 - which *exceeds* the Par
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Paper Info
- Exam
- SQE
- Mock number
- 24 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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