SQE1 Tort & Business Law

Question 1

In the tort of negligence, what three elements must a claimant establish to succeed?

Accepted Answer

Duty of care, breach of duty, causation of damage

Answer

To succeed in negligence, a claimant must prove: (1) the defendant owed them a duty of care; (2) the defendant breached that duty; and (3) the breach caused the claimant's damage, which must not be too remote.

Question 2

Which case established the modern test for duty of care in negligence using the 'neighbour principle'?

Accepted Answer

Donoghue v Stevenson [1932]

Answer

Donoghue v Stevenson [1932] established the 'neighbour principle' — you must take reasonable care to avoid acts or omissions that you can reasonably foresee would be likely to injure your neighbour (those closely and directly affected by your act).

Question 3

What is the Caparo three-stage test for establishing a duty of care?

Accepted Answer

Foreseeability of damage, proximity of relationship, and fairness/justness/reasonableness of imposing a duty

Answer

The Caparo Industries plc v Dickman [1990] three-stage test requires: (1) the harm was reasonably foreseeable; (2) there was a relationship of proximity between the parties; and (3) it is fair, just, and reasonable to impose a duty.

Question 4

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

Accepted Answer

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

Answer

'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.

Question 5

Under English company law, what is the main consequence of the principle of 'separate legal personality' established in Salomon v Salomon & Co Ltd [1897]?

Accepted Answer

A company is a legal person distinct from its shareholders, with its own rights and liabilities

Answer

Salomon v Salomon & Co Ltd [1897] established that a registered company is a legal person entirely separate from its shareholders. The company has its own rights, can own property, enter contracts, and its shareholders are not personally liable for its debts (limited liability).

SQE1 Practice Test

SQE1 Practice Test

SQE1 Tort & Business Law