Mixed Deck — All SQE1 Topics Flashcards

A buyer and seller exchange contracts for the sale of a freehold house. The contract incorporates the Standard Conditions of Sale (Fifth Edition - 2018 Revision) without amendment. Between exchange and completion, a storm causes significant damage to the roof of the property. Which of the following statements most accurately describes the legal position?

Answer: The buyer bears the risk and must proceed with completion at the full purchase price, but may be able to claim on the seller's insurance policy.

Under the Standard Conditions of Sale (Fifth Edition - 2018 Revision), condition 5.1.1 states that the property is at the buyer's risk from the date of the contract (exchange). Therefore, the buyer must still complete the purchase. However, condition 5.1.3 requires the seller, if they are obliged to insure (which they often are under a separate mortgage or as a prudent measure), to hold any policy monies received in trust for the buyer or assign the right to claim. Thus, the buyer's primary recourse is often through the seller's insurance.

In contract law, what does 'consideration' mean?

Answer: Something of value given by each party in exchange for the other's promise

Consideration is something of value (money, goods, services, or a promise) provided by each contracting party in exchange for the other's promise. It must be sufficient (legally recognised) but need not be adequate (equal in value).

Under the SRA Standards and Regulations 2019, what are the two Codes of Conduct that solicitors must comply with?

Answer: The SRA Code of Conduct for Firms and the SRA Code of Conduct for Individuals

The SRA Standards and Regulations 2019 include two separate Codes of Conduct: the SRA Code of Conduct for Solicitors, RELs and RFLs (for individuals) and the SRA Code of Conduct for Firms. Both apply cumulatively to solicitors working in authorised firms.

In civil litigation, what is the purpose of a 'Part 36 offer' under the Civil Procedure Rules?

Answer: An offer by either party to settle that carries costs consequences if rejected and not beaten at trial

A Part 36 offer (CPR Part 36) is a formal settlement offer with specific costs consequences. If a claimant fails to beat a defendant's Part 36 offer at trial, they usually pay the defendant's costs from the date of expiry of the offer. If a claimant's Part 36 offer is not beaten, the defendant faces enhanced consequences.

What is 'diminished responsibility' as a partial defence to murder under the Homicide Act 1957 (as amended by the Coroners and Justice Act 2009)?

Answer: A partial defence reducing murder to manslaughter where the defendant suffered an abnormality of mental functioning arising from a recognised medical condition that substantially impaired their responsibility

Diminished responsibility (s.2 Homicide Act 1957, as amended) reduces murder to voluntary manslaughter. It requires: an abnormality of mental functioning; arising from a recognised medical condition; which substantially impaired the defendant's ability to understand their conduct, form a rational judgment, or exercise self-control; and which provides an explanation for the killing.

What is the purpose of a 'completion statement' in a conveyancing transaction?

Answer: A financial statement prepared by the solicitors showing the balance of funds to be paid by the buyer on completion, taking into account all adjustments

A completion statement sets out all the financial adjustments required on completion (purchase price, deposit paid, apportionments of outgoings, SDLT, Land Registry fees) and shows the net amount the buyer's solicitor must transfer to the seller's solicitor on completion day.

In English law, the defence of self-defence requires that the force used was:

Answer: Proportionate to the threat, even if the defendant's perception of the threat was mistaken

Self-defence under section 76 of the Criminal Justice and Immigration Act 2008 requires that the defendant genuinely believed force was necessary and that the force used was reasonable in the circumstances as the defendant believed them to be, even if that belief was mistaken.

A solicitor is instructed to serve a claim form on an individual defendant within the jurisdiction of England and Wales. The solicitor posts the claim form by first-class post on a Monday. According to the Civil Procedure Rules, on which day is the claim form deemed to be served?

Answer: On the Wednesday, the second business day after it was posted.

Under CPR 6.14, a claim form served by first-class post is deemed to be served on the second business day after it was posted, provided that day is a business day. If the claim form is posted on a Monday, the second business day after posting is Wednesday. This deemed date of service is crucial for calculating the deadlines for subsequent steps, such as filing an acknowledgment of service or a defence.

What is a 'retainer' in the context of a solicitor-client relationship?

Answer: The contractual agreement between solicitor and client defining the scope of the work to be undertaken and the terms of the engagement

A retainer is the contract between solicitor and client that defines the scope of the legal services to be provided, the terms on which they will be provided (including costs), and each party's obligations. It forms the basis of the professional relationship.

What is the role of 'requisitions on title' in a conveyancing transaction?

Answer: The buyer's solicitor's written enquiries to the seller's solicitor about title and other matters arising from deduction of title

Requisitions on title are written questions raised by the buyer's solicitor to the seller's solicitor following review of the title documentation, seeking clarification or resolution of queries about the title before exchange of contracts.

What is the primary test used in English negligence law to determine whether a defendant has breached their duty of care?

Answer: Whether the defendant fell below the standard of the reasonable person (the Bolam test for professionals)

The standard for breach of duty in negligence is the objective reasonable person standard. For professionals, the Bolam test applies: a professional is not negligent if they acted in accordance with a practice accepted as proper by a responsible body of professional opinion.

Which doctrine allows a court to imply a term into a contract on the basis that it is so obvious it goes without saying?

Answer: The officious bystander test

The 'officious bystander' test (from Shirlaw v Southern Foundries [1939]) implies terms that are so obvious that a bystander suggesting them would be told 'of course'. The business efficacy test is the other main implied term test. Both tests must be satisfied to imply a term in fact.

Under the Legal Services Act 2007, which body is responsible for oversight regulation of the Solicitors Regulation Authority?

Answer: The Legal Services Board (LSB)

The Legal Services Board (LSB) is the independent oversight regulator established by the Legal Services Act 2007. It oversees the approved regulators (including the SRA) and ensures they operate in accordance with the regulatory objectives of the Act.

Which of the following constitutes a breach of the self-dealing rule applicable to trustees?

Answer: A trustee purchasing trust property from the trust estate for their own benefit

The self-dealing rule prohibits a trustee from purchasing trust property because they simultaneously owe a duty as seller (to maximise price) and act as buyer (with an interest in minimising price), creating an irreconcilable conflict of interest.

In tort law, what does the principle 'res ipsa loquitur' mean and when is it applied?

Answer: The thing speaks for itself — it shifts the evidential burden when an accident would not normally happen without negligence

'Res ipsa loquitur' (the thing speaks for itself) applies when the circumstances of an accident are such that it would not have occurred without negligence, the thing causing it was under the defendant's control, and there is no other explanation. It raises an inference of negligence.

Under the SRA Accounts Rules, what is the primary purpose of a client account?

Answer: To safeguard client money received by a solicitor in connection with regulated services by holding it separately from the firm's own money

The SRA Accounts Rules require that client money must be held in a separate client account to protect clients' funds, ensuring they are not mixed with the firm's own money and remain available if the firm experiences financial difficulty.

What is the overriding principle concerning the payment of interest on money held for a client in a general client account under the SRA Accounts Rules?

Answer: The firm must account to the client for a fair sum of interest.

SRA Accounts Rule 7.1 explicitly states that a firm must 'account to clients or third parties for a fair sum of interest on any client money held'. While a firm can have a written agreement with a client to the contrary, the default position is one of fairness. There is no specific monetary threshold or requirement to use the Bank of England base rate, but the policy must be fair and reasonable in the circumstances.

The SRA's seven Principles (2019) include acting with integrity. Which Principle requires solicitors to act with independence?

Answer: Principle 4

Principle 4 of the SRA Principles 2019 requires solicitors to act with honesty. Principle 3 requires them to act with independence. The SRA Principles rank in priority order: the first two (public interest and rule of law) take precedence over all others.

What are 'letters of administration' and when are they required in the administration of an estate?

Answer: They are required when a person dies intestate, or when a will exists but no executor is named or willing to act, granting authority to administer the estate

Letters of administration are granted by the Probate Registry to authorise a person (the administrator) to deal with a deceased's estate where the deceased died intestate, or where a will exists but no named executor is able or willing to act (in which case letters of administration with will annexed are granted).

Under the Legal Services Act 2007, which body is the oversight regulator for all approved legal regulators?

Answer: The Legal Services Board

The Legal Services Board (LSB) was established by the Legal Services Act 2007 as the oversight regulator. It oversees approved regulators including the SRA (solicitors), BSB (barristers), and CILEx Regulation (legal executives).