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All SQE mocks

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SQE · Free Mock Test 71 of 250

Free SQE Mock Test 71 — 20 Questions + Full Answers

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Applaa SQE Mock Test 71

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Sample Questions — SQE Mock 71

8 of 20 shown

Correct answers highlighted in green. Full explanations included.

FLK1

A shopkeeper (Grace) places a designer coat in the shop window with a price tag of £75,000. A customer (Charlotte) 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

FLK1

A director of Titan Infrastructure plc (a private company limited by shares) wants to allot new shares to a new investor (Jack) to raise capital of £45,000. 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: Titan Infrastructure plc is a *private* company limited by shares with *one* class of ordinary shares. 2. Apply Section 550: Directors of such a compan

FLK1

A shopkeeper (Diana) places a vintage watch in the shop window with a price tag of £120,000. A customer (Benjamin) 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

FLK1

A claimant (Henry) has brought an action against a defendant (Kate) in the County Court for breach of contract, claiming £25,000 in damages. The defendant has filed a defense. In accordance with the Civil Procedure Rules (CPR), which track will this claim be allocated to?

A.Small Claims Track
B.Fast Track
C.Intermediate Track
D.Multi-Track
E.Commercial Court Track

✓ Worked Explanation

Core Concept: CPR Track Allocation The Civil Procedure Rules (CPR) allocate civil claims to one of four procedural tracks based primarily on *financial value* (and sometimes complexity). Each track has different procedural rules, costs caps, and hearing formats. Step-by-Step Resolution: 1. Identify the Claim Value: The claim is for £25,000. 2. Apply the Track Thresholds: - Small Claims Track: £10,000 (for most claims; £1,000 for personal injury/housing disrepair) - Fast Track: > £10,

FLK1

A shopkeeper (Ryan) places a laptop in the shop window with a price tag of £7,500. A customer (Emma) 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

FLK1

A claimant (Lucas) makes a valid CPR Part 36 settlement offer to the defendant (Uma) of £5,000. The defendant rejects the offer. The case goes to trial, and the claimant wins, obtaining judgment of £5,750. 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: £5,000 - a valid Part 36 offer. 2. Uma's Decision: Rejected the offer and proceeded to trial. 3. Trial Outcome: Lucas wins £5,750 - which *exceeds* the Part 36 offer. Th

FLK1

A shopkeeper (Wendy) places a laptop in the shop window with a price tag of £45,000. A customer (Julia) 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

FLK1

Prior to the formal incorporation of Delta Builders Ltd, a promoter (Diana) 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 Diana 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: Delta Builders Ltd had no legal existence when Diana signed the contract. There was no legal entity to be bound. 2. Apply Section 51: The contract takes eff

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