SQE2 Legal Drafting

Question 1

When drafting a commercial lease, which of the following clauses is essential to protect the landlord's interest?

Accepted Answer

A rent review clause specifying the mechanism and frequency of rent adjustments

Answer

A clause allowing the tenant to sublet without consent

Answer

A clause removing the landlord's obligation to maintain the structure

Answer

A clause allowing the tenant to terminate at any time without notice

Question 2

In contract drafting, what is the purpose of a force majeure clause?

Accepted Answer

To allocate risk for events beyond the parties' control that prevent performance, such as natural disasters, pandemics, or war

Answer

To allow either party to terminate at will

Answer

To set out the payment terms

Answer

To define the governing law

Question 3

When drafting a will, what is the attestation clause and why is it important?

Accepted Answer

It confirms that the will was signed by the testator in the presence of two witnesses who also signed in the testator's presence, satisfying section 9 of the Wills Act 1837

Answer

It lists the testator's assets

Answer

It appoints the executors

Answer

It revokes all previous wills

Question 4

What is the purpose of a definitions clause at the beginning of a legal document?

Accepted Answer

To assign specific meanings to key terms used throughout the document, ensuring consistency and avoiding ambiguity

Answer

To make the document longer and more impressive

Answer

To list the parties' addresses

Answer

To set out the recitals

Question 5

When drafting an indemnity clause, what key distinction should the drafter understand?

Accepted Answer

An indemnity is a primary obligation to compensate for loss, while a limitation of liability clause caps the amount recoverable — the drafter must balance protection for both parties

Answer

There is no difference between an indemnity and a guarantee

Answer

Indemnity clauses are not enforceable in English law

Answer

An indemnity only applies to physical damage

Question 6

In drafting a shareholders' agreement, what is the purpose of a drag-along clause?

Accepted Answer

To enable majority shareholders to compel minority shareholders to sell their shares on the same terms if a buyer offers to purchase the entire company

Answer

To prevent any shareholder from selling their shares

Answer

To allow minority shareholders to block any sale

Answer

To set the dividend policy