SQE2 Legal Drafting 2

Question 1

When drafting a non-disclosure agreement (NDA), which elements are essential for enforceability?

Accepted Answer

A clear definition of confidential information, the purpose for which it may be used, the duration of obligations, permitted disclosures, and remedies for breach

Answer

Only the names of the parties

Answer

Only a statement that information is confidential

Answer

A requirement that both parties are UK companies

Question 2

What is the 'blue pencil test' in the context of drafting restrictive covenants?

Accepted Answer

A principle allowing courts to sever an unenforceable part of a restrictive covenant, leaving the remainder enforceable, provided the removal does not change the nature of the covenant

Answer

A test of whether the document looks professionally formatted

Answer

A requirement to use blue ink for signing

Answer

A test applied only to employment contracts

Question 3

When drafting a settlement agreement in an employment context, what must be included for the agreement to be valid under the Employment Rights Act 1996?

Accepted Answer

The agreement must be in writing, relate to particular proceedings, the employee must have received independent legal advice, the adviser must have insurance, and the agreement must identify the adviser

Answer

Only the settlement amount

Answer

Only the signatures of both parties

Answer

A statement that the employee is happy with the terms

Question 4

In property drafting, what is the significance of the 'usual covenants' implied into a lease?

Accepted Answer

They are implied terms covering rent payment, repair obligations, quiet enjoyment, and insurance, which apply unless expressly excluded or varied

Answer

They are optional extras that add no legal value

Answer

They only apply to agricultural leases

Answer

They replace the need for any express terms

Question 5

What drafting technique should be used to ensure a contract clause survives the termination of the agreement?

Accepted Answer

Include a survival clause that expressly lists which provisions continue after termination, such as confidentiality, limitation of liability, and dispute resolution

Answer

No special drafting is needed — all clauses survive automatically

Answer

Mark the clause in bold font

Answer

Include the clause in an appendix

Question 6

When drafting a guarantee, what formalities must be observed under section 4 of the Statute of Frauds 1677?

Accepted Answer

The guarantee must be evidenced in writing and signed by the guarantor or their authorised agent

Answer

No formalities are required for guarantees

Answer

The guarantee must be witnessed by two people

Answer

The guarantee must be registered with the Land Registry