Free SQE Mock Test 247 — 20 Questions + Full Answers
Solicitors Qualifying Examination · Trainee solicitors · SQE1 sits: Jan & Jul
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Applaa SQE Mock Test 247
applaa-sqe-mock-247.pdf · 20 questions
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8 of 20 shownCorrect answers highlighted in green. Full explanations included.
A claimant (Olivia) makes a valid CPR Part 36 settlement offer to the defendant (William) 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. Olivia's Offer: £18,500 - a valid Part 36 offer. 2. William's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Olivia wins £21,275 - which *exceeds* the Part 36 o
Yasmine offered to sell a printing press to Charlie for £95,000. Charlie replied: 'I accept your offer, but I will pay £85,500.' Yasmine did not respond. Two days later, Charlie wrote to Yasmine saying: 'I accept your original offer of £95,000.' Is there a binding contract between Yasmine and Charlie?
- 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- B.Yes, because the original offer remained open and had not been revoked by the offeror.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: Yasmine offers the printing press for £95,000. 2. Counter-Offer: Charlie replies with £85,500 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the or
Jack offered to sell a residential apartment to Mia for £150,000. Mia replied: 'I accept your offer, but I will pay £135,000.' Jack did not respond. Two days later, Mia wrote to Jack saying: 'I accept your original offer of £150,000.' Is there a binding contract between Jack and Mia?
- 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: Jack offers the residential apartment for £150,000. 2. Counter-Offer: Mia replies with £135,000 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the
A builder (Georgia) contractually agreed to construct a wall for a customer (Helen) 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
Prior to the formal incorporation of Vanguard Industries plc, 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: Vanguard Industries plc had no legal existence when Amelia signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract tak
A builder (Charlie) contractually agreed to construct a wall for a customer (Beatrice) 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
A claimant (Amelia) makes a valid CPR Part 36 settlement offer to the defendant (Zachary) of £500,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £575,000. 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. Amelia's Offer: £500,000 - a valid Part 36 offer. 2. Zachary's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Amelia wins £575,000 - which *exceeds* the Part 36
Julia offered to sell a sports car to Nora for £5,000. Nora replied: 'I accept your offer, but I will pay £4,500.' Julia did not respond. Two days later, Nora wrote to Julia saying: 'I accept your original offer of £5,000.' Is there a binding contract between Julia and Nora?
- 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 sports car for £5,000. 2. Counter-Offer: Nora replies with £4,500 - this is a counter-offer, NOT an acceptance. Under Hyde v Wrench (1840), this kills the original offe
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Paper Info
- Exam
- SQE
- Mock number
- 247 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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