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L7 Solicitor Apprenticeship - Skills Scan

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FLK 1 - Legal System

The Royal Prerogative is a constitutional source of power. Which of the following would not be considered a prerogative power?

a.The power to dissolve Parliament

b.The power to appoint ministers.

c.The power to appoint prorogue Parliament

d.The power to appoint a new leader of the opposition in the House of Commons

e.The power to ratify international treaties.

Which of the following is not one of the main functions of Parliament?

a. To declare war

b. To pass laws that rule the country

c. To deal with public finance

d. To provide a forum for the actions and policies of the government to be publicly scrutinised.

e. To provide a representative body so that the public can have their interests and concerns brought to Parliament’s attention via their MP.

A campaign group wishes to hold a march to stop people paying income tax as part of a campaign for the abolition of all taxation. They give notice properly under s11 of the Public Order Act 1986. The most senior officer present wishes to impose conditions on the procession as he has reasonable concerns that the protest might result in one or more of the following. Which of her concerns is not a lawful ground to impose conditions on the procession?

a. The march might result in serious public disorder.

b. The march might result in damage to property.

c. The march might result in serious disruption to the life of the community.

d. Where the purpose of the march is to intimidate others in an attempt to compel them not to do something which they are entitled to do.

e. Where the purpose of the march is to intimidate others in an attempt to compel them or to do something they are not entitled to do.

The decisions, acts, and failures to act by public bodies exercising public functions are all potentially challengeable by judicial review. In an environmental context, such bodies may include government ministers, local authorities, Non-Departmental Public Bodies (NDPBs) such as the Environment Agency and Natural England. Which one of the following statements is false?

a. The courts look at the origins, history, constitution, and membership of an organisation to determine if it is a public body.

b. The body may be subject to judicial review even if its powers are based on agreement if effective public law remedies are available.

c. A body whose origin and constitution owes nothing to governmental control may be subject to judicial review if it has been woven into the fabric of governmental control or statutory regulation.

d. Judicial review gives courts the power to declare an action of the executive or legislative branch to be unconstitutional.

An MP wishes to make use of Parliamentary privilege to accuse a group of individuals of membership of a terrorist organisation during a House of Commons debate. Which of the following statements best reflects the position with respect to Parliamentary privilege:

a. The MP can be sued for libel

b. The MP must be prosecuted, either for malfeasance in public office or for criminal libel, both of which offences are made out

c. If the MP names the individuals, they will face internal disciplinary sanctions under Parliamentary rules on abuse of Parliamentary privilege.

d. This is a permitted use of Parliamentary Privilege

e. Under Parliamentary rules, the MP can name the individuals provided they are a government minister or shadow cabinet member making an official party policy statement

FLK1 - Contract Law

A legally enforceable agreement can become a contract where the necessary rules are met. Because of the available remedies that can be sought where a party is in breach of contract, there needs to be some indication that the parties are willing to accept a legal penalty should they fail to perform their obligations. With this is mind, which of the following best describes the element of intention between the parties:

a. Is an essential element to substantiate a binding legal obligation

b. Is an express element of the agreement between the parties

c. Is optional for the benefit of proving a commitment

d. Is an essential element to prove breach

A contract can have consequences for parties directly or indirectly connected to the agreement. The parties to which obligations are owed will be identified within the terms of every contract however some reference may be seen to that of a ‘third party’. Within the law of contract, a "third party" means anyone who is:

a. Not party to the agreement

b. Not obliged to meet obligations to the named parties or express terms

c. Not party to the contract

d. Not party to the obligation

The performance of the contract must be exactly what is promised under the contract in order for the contract to be discharged by performance, but there are some exceptions. Which of the following does not provide an exception?

a. Where the contract is a divisible contract.

b. Where there has been substantial performance of the contract.

c. Where one party is prevented by the other from completing the contract.

d. Where partial performance of the contract is accepted by the other party.

Sarah is a painter and decorator. Max employed her to decorate her dining room at a time when Sarah is the only available decorator in the area. He requires the room to be completed by 20 September, when he has a dinner party planned. Sarah has completed three out of four walls and then gets a better offer to work on a different house further down the street. A day before the business dinner, Sarah has told Max that he must pay 25% extra, or she will not finish the work. Max has paid the extra, but now wants to know if he can recover the extra money he has paid?

a. No. A threat to breach a contract is lawful and a’ reasonable man’ would have resisted the pressure applied by Sarah suing their normal fortitude

b. No. Sarah has provided a practical benefit in finishing the room and so the agreement to pay extra is binding, Max is benefiting from the completed work and Sarah has lost the chance of more profitable activity

c. Yes. Sarah's threat to breach the main contract makes the contract to pay extra voidable for duress, since it is made in bad faith, is illegitimate and caused Max to pay the extra money. Max had no reasonable alternative open to him because there was no other decorator in the area and the room had to be finished by 20 September

d. Yes, on the grounds that Max provided no consideration for her promise to pay extra, and so the contract is void and Max can recover the money paid

A buys a train ticket from a self-service machine for the purpose of travelling to an important business meeting. The ticket contains the following clause printed on its face in large, red letters: 'No liability in negligence is accepted for injury or death caused to passengers whilst travelling on this train.' Which one of the following statements is most likely to be true in relation to the exclusion clause?

a. The clause is binding upon A because it has been reasonably drawn to his attention before boarding the train.

b. The clause is not binding upon A because it has not been incorporated into the contract.

c. The clause is not binding upon A because it is particularly onerous.

d. The clause is subject to the reasonableness test under the Unfair Contract Terms Act 1977.

FLK1 - Tort Law

You meet with a new client who witnessed a vehicle accident and has been suffering with PTSD since. Which of the following statements does not best explain a requirement that a secondary victim must prove to establish a duty of care?

a) Suffering from a recognised injury

b) Close ties of love and affection to a primary victim

c) Proximity in time and space to the event

d) Witnessed with own unaided senses

e) Suffered a sudden shock

Which of the following statements best represents the operation of vicarious liability?

a) Only when an employee has unintentionally committed a wrongful act, the court will look at whether the act has a ‘close connection’ to the employment to establish the liability of an employer

b) An act of an employee may be in the course of employment if it is within the field of the employee’s activities

c) In the absence of a tort being committed by an employee, an employer will escape any liability

d) An employer must be the occupier of the premises in which the employee was injured

e) Liability of an employer does not apply to assaults on other employees outside of work hours.

Which of the following circumstances provides the best example of when the defence of volenti may succeed?

a) The claimant was aware of the defendant’s intended actions

b) The claimant foresaw that they could be injured as a result of the defendant’s actions

c) The claimant planned the event in which the defendant’s actions resulted in the loss to the claimant

d) The defendant asked the claimant’s permission before engaging in the relevant act e) Neither the defendant nor the claimant foresaw the outcome

Your client seeks advice on the length of time they have to bring a claim for personal injury?

a) There is no limitation period for personal injury

b) Under the Limitation Act 1980, the claimant will have 3 years to claim for personal injury

c) If the claimant is under 18 at the time of the accident, the limitation period begins on their 18th birthday

d) The claimant suffers from a mental health condition which affects capacity; the limitation period will start 10 years after the accident.

e) The limitation period starts once legal advice has been sought

Which of the following does not accurately explain the use and operation of vicarious liability?

a) An important justification for vicarious liability is that of retribution in order to encourage employers to take extra care to properly select, train and supervise employees in order to prevent incidents and as such raise standards in the way businesses operate.

b) Vicarious liability is a principle whereby an employer, may be held responsible for a tort committed by an employee. It requires an employment relationship between the defendant business organisation and the tortfeasor, or an analogous relationship.

c) There must also be a close connection between that relationship and the tort so as to make it fair and just that the business be held liable to the claimant.

FLK1 - Dispute Resolution

Which of the following least represents the general aims of the pre-action protocols

a) To encourage early exchange of information about a prospective claim

b) To ensure court time is only used for the most important cases

c) To enable parties to understand the position of the opponent at an early stage

d) To enable efficient management of proceedings on commencement of a claim

e) To avoid the use of litigation

The Civil Procedure Rules set out clear time limits for the service of a claim and the methods of response. Which of the following statements is incorrect?

a) A claim form must be issued for service within the jurisdiction within 4 months of the date of issue.

b) Parties to an action can agree an extension of time for service of a claim without the agreement of the court

c) A defendant can serve notice to a claimant who has had a claim form issued but has not yet served it, and if not complied with the court can dismiss the claim.

d) An application to extend time for service of the claim form must be made with the period of validity of the claim form.

e) The default position is that the county court will serve a claim form they have issued.

Which of the following must the court consider when giving summary judgement against a claimant?

a) That there is no other compelling reason why the case should be disposed of at a trial

b) That both parties have discharged their burdens of proof

c) That the defendant has sufficient funds to defend a claim

d) That the defendant has no real prospect of defending the claim

e) That the claimant has no realistic possibility of succeeding on the claim

With reference to summary judgement applications, identify the best answer?

a) A claimant cannot apply for summary judgement until the defendant has filed a defence

b) A claimant cannot apply for summary judgement until the defendant has filed an acknowledgement of service

c) The court can give summary judgement against a claimant in any type of proceedings but the same is not true of summary judgments against defendants

d) On an application for summary judgement by the claimant, a defendant must file a defence before the hearing.

e) The court only has the power to grant or refuse a summary judgement application.

With reference to the ways in which a defendant may respond to a claim, identify the best answer:

a) A submission that the claim is outside of the limitation period does not amount to a defence

b) A counterclaim is not a claim in its own right

c) A counterclaim is a defence to the original claim

d) If a defendant may make an application for default judgement in respect of a counterclaim

e) A defendant may make an application for summary judgement once a claim has been served

FLK1 - Business L&P

Sole trader is one of the most common types of business structure. Which of the following does not correctly represent a feature of a sole trader?

a) Sole trader runs a business on their own as a self employed person

b) No formal steps or registrations are required to trade

c) Sole traders have unlimited liability

d) Sole trader is an example of an unincorporated business

e) Sole practitioners and sole traders are one and the same

A company limited by shares can be an attractive business structure. Which of the following does not correctly reflect a feature of such a business?

a) A company may be sued or face a criminal prosecution.

b) The effect of “Ltd” indicated that the owners a not liable for the debts of the company

c) To register a company, the documents that must be delivered to the registrar are: 1. Application for registration 2. Memorandum of association 3. Articles of association

d) A business name of a company cannot be a swear word

e) The trading name of a company may be different to the business name

What is meant by the company’s “issued share capital”?

a) The difference between the total nominal value of the shares that have been allotted and the total nominal value of the shares that can be allotted.

b) The total market value of shares that have actually been allotted

c) The total nominal value of the shares that may be issued by a company

d) The total nominal value of the shares that have been actually allotted

e) The difference between the market value of the shares that have been allotted and the value of the shares that can be

What did the decision in Solomon v Solomon & Company (1897) provide?

a) Details of how a partnership can have limited liability.

b) The concept of a distinct legal person which is entirely different to the members of a company

c) That all sole traders should have limited liability.

d) If a sole trader is in financial difficulty, they should incorporate to avoid unlimited liability

e) Companies are a more advantageous business structure than sole traders

With regards to partnerships as a business structure, which of the following is not accurate?

a) An unlimited partnership exists if the statutory rest in section 1 of the Partnership Act 1890 is satisfied

b) A formal registration of documents is not required for an unlimited partnership

c) Co-ownership of property does not in itself create a partnership even if there is sharing of profits.

d) A one-off venture between two or more people will amount to a partnership

e) The financial affairs of an unlimited partnership are not publicly available.

FLK1/FLK2 - Ethics

You have been working with a very high-profile client for two years when you notice some irregularities in financial transactions with the client and the office client account. Large sums of money have been coming in and out of the client account with vague descriptors like “office costs” or “management fees” — you have never seen these sorts of items in the client’s accounts before. You query these with the client, who tells you that they are insulted by your accusations and suggestions of criminality. The client demands to speak with the senior partner, whom he calls by her first name, stating that they are on very close personal terms. Which of the following best reflects your actions?

a. You would not make any response to the client regarding their statement to you. It is key that you do not let them know that you have or are considering reporting them for potential money laundering. If you have a suspicion that your firm is being used to launder money, your Money Laundering Reporting Officer must submit a SAR to the National Crime Agency.

b. This is not necessarily money laundering and the code of ethical behaviour, disclosure and confidentiality means that you must promptly investigate the circumstances with your Money Laundering Reporting Officer. The client must not be advised of any of the facts except that an investigation has been initiated without prejudice on their part. If necessary, you may submit a report, the SAR, to the NCA within 21 days of the initial report to the MLRO.

c. Contact the senior partner and stress that you did not make accusations of criminal conduct and that you were abiding by your obligations to identify unusual transactions. These sums were unusual but the established client who must have incurred due diligence is not necessarily guilty of money laundering.

d. You should make it clear to the client that you take your concerns about the unusual transactions seriously. Additionally, you can stress to the client that their unwillingness to explain the transactions and the fact that they responded by disengaging from your services suggest that they do not want you to look into it any further, which should further raise suspicion. You would issue a verbal warning to them that you could be entitled to make a Suspicious Activity Report to the National Crime Agency.

A man instructs his solicitor to act for him in the purchase of the entire issued share capital of a limited company from another company for cash value. The solicitor advises on the share purchase and helps to prepare and negotiate all the necessary documentation including the transfer of the purchase money from the client’s business partner in Europe. Neither the solicitor nor his firm is authorised by the Financial Conduct Authority to carry on a ‘regulated activity’ as defined in the Financial Services and Markets Act 2000 and related secondary legislation. Which of the following best reflects the solicitor’s actions?

a. The solicitor has breached a general prohibition by carrying on a regulated activity because the transaction involves the cash purchase of the entire issued share capital of the company and no exclusion or exemption applies. A cash purchase is illegal and unless the money source is verified through enhanced diligence the transaction is void.

b. The solicitor has not breached a general prohibition by carrying on a regulated activity because an exemption applies to professional firms which are supervised by the Solicitors Regulation Authority when they engage in corporate work but there is an indication of suspicious activity that may amount to money laundering.

c. The solicitor has not breached a general prohibition by carrying on a regulated activity because an exclusion applies if the transaction relates to the purchase of any number of shares in a private limited company. A limited company can trade in its shares and such a transaction is common and not suspicious activity that would require to be reported to the MLRO.

d. The solicitor has breached a general prohibition by carrying on a regulated activity because the solicitor has given advice on the purchase of shares in a specific company and no exclusion or exemption applies. The transfer for cash value is permissible and out with the risk assessment for money laundering because it is a listed company.

Conflict of interest is another important principle in ethical behaviour. Which of the following options reflect this principle?

a. A lawyer should be wary of, for example, working for his wife’s or her husband’s ex-spouse. Unless the divorce had been particularly amicable, the lawyer might be put into a position in which his or her emotional feelings and professional duties are in too much of a conflict.

b. The no conflict rule applies when the client’s interests conflict not only with those of the lawyer, but also with those of the lawyer’s family or someone with whom the solicitor has an intimate relationship.

c. Where a solicitor discovers that he or she has been negligent in handling a client’s affairs and that the client may have a claim against the solicitor, there is a conflict of interest and the solicitor must make the client aware of the potential claim.

d. A firm of solicitors used a company to provide medical reports for clients. One of the partners in the firm owned one third of the shares in the company. He told neither his partners nor the clients. He made substantial profits from this arrangement.

e. All of the above.

A solicitor supplements his income with buy-to-let flats. The solicitor decides to sell one of the flats and use the capital for another investment. One of the solicitor's clients offers the full asking price for the flat and the solicitor accepts their client's offer. In the full knowledge that the solicitor is the seller, the client instructs the same solicitor in writing to act as his solicitor in the transaction. The solicitor accepts the instruction and prepares all the documents. The transfer is completed without complications. Which of the following statements best describes the solicitor’s actions?

a. The solicitor's actions were not in accordance with the SRA Standards and Regulations because a solicitor cannot act if there is an own interest conflict or a significant risk of an own interest conflict.

b. The solicitor's actions were in accordance with the SRA Standards and Regulations because a solicitor can act where there is an own interest conflict if they have received written consent from the client.

c. The solicitor's actions were in accordance with the SRA Standards and Regulations because a solicitor can act where there is an own interest conflict if the solicitor and the client have a substantially common interest.

d. The solicitor's actions were not in accordance with the SRA Standards and Regulations because a solicitor cannot act where there is an own interest conflict unless they are satisfied it is in their client's best interests.

Gerry is a Solicitor. He is passed a new client file which contains details of the imminent purchase of a property by Mr Granger. The seller, Mrs Havisham, is seeking a quick sale and has valued their property significantly below the current market value for that area. Gerry recognises the area as being one his sister has been interested in but has to date been unable to find an affordable property to buy for her and her four children. Gerry immediately calls his sister and tells her of the property, and she is delighted to hear that it could be affordable to her. Gerry calls Mr Granger and advises that he should refrain from proceeding with the purchase because Gerry is actively locating a more suitable property for the client based upon the fact that Mr Granger has a significantly more substantial financial budget with which to purchase a new home. Gerry also advises that the area within which Mrs Havisham lives is generally regarded as being ‘down market’ and would probably better suit someone who had a large family. Gerry’s sister speaks with the receptionist of the firm and makes an appointment to meet with a junior associate telling the receptionist that it concerns a house purchase that is urgent and that an offer must be placed within the day. The receptionist makes the appointment, and the junior associate places an offer with the seller, Mrs Havisham, who immediately takes the property off the open market. Gerry’s sister visits the property later that day and finds that it is very run down and requires a great deal of redecoration. Which of the following statements best describes Gerry’s actions?

a. Gerry using the facts of the house purchase and trying to dissuade the client from proceeding is an example of taking unfair advantage of his position despite the fact that the client will possibly benefit from purchasing another property with Gerry’s advice and assistance.

b. Gerry has not evidenced a clear self-interest and continues to seek to ensure that his client will be advantaged. Gerry provides advice on the area within which the client was seeking to purchase the property and therefore met his obligation to ensure that his client receives an honest and lawful service.

c. Gerry, from the facts of the scenario, may suggest that he is conducting himself in a manner which would not result in a breach of his obligations because the client has not been disadvantaged because he has not lost a property which may not have been a purchase in his best interests. Gerry’s client received advice upon the circumstances concerning the location of the property and Gerry was actively engaged upon seeking a suitable property for the client taking full consideration of the client’s circumstances and instructions.

d. Gerry’s actions in briefing his client and the result of the house inspection by Gerry’s sister clearly suggest that his independence is maintained and that he is acting honestly in respect to his professional obligations to briefing his client. Gerry’s sister will purchase the property with the assistance of the junior associate and therefore this breaks the chain of linked transactions between Gerry, his client, the purchase and Gerry’s sister.

FLK2 - Criminal L&P

What is the result element of the actus reus?

a. Surrounding facts or circumstances necessary for the offence

b. D's acts or omissions required for the offence

c. What impact D's offence must have on the community

d. What D must cause in order to complete the offence

Which of the following cannot give rise to criminal liability for an omission to act?

a. A duty arising out of a sense of religious obligation

b. A duty arising out of contract

c. A duty arising out of a relationship

d. A duty arising from the assumption of care for another

In which case was it held that it would not be proper to draw a s34 inference where there has been so little disclosure that the solicitor would be unable to usefully advise their client?

a. R v Jogee 2016

b. R v Argent 1997

c. R v Hoare 2004

d. R v Roble 1997

After all rights to apply for bail have been exhausted under what circumstances can a renewed application be made?

a. If the defendant wants another application

b. If the defendant is charged with further offences

c. If the defendant serves a defence statement

d. If there has been a change in circumstances

Which of the following are NOT allowed in a Youth Court trial?

a. Solicitor

b. Witnesses

c. District Judge

d. Public

FLK2 - Land Law

Which one of the following statements is FALSE?

a. All rights exercised in relation to land have proprietary status

b. A person granted a personal right is only able to enforce that right against the person who granted it

c. A person granted a proprietary right can enforce that right against the original grantor and, in some circumstances, any other person who comes to the land over which the right is exercised

d. Proprietary rights are rights which govern a person's ability to use and enjoy land

Which of the following is NOT one of the principles upon which the system of registered land is built?

a. Title

b. Curtain

c. Insurance

d. Mirror

Which of the following statements best exemplifies the principle that compulsory first registration of title arises where an event occurs which triggers the requirement for registration?

a.Because of the Land Registration Act 2002, commercial leases are now compulsory registered where they exist for between seven and twenty-one years

b.Leases granted for less than seven years, or the assignment of a lease with less than seven years to run, must be registered with its own individual title number

c.The most significant extensions to the principle of compulsory registration can be found in the LRA 1925 with regards to lease and unregistered land upon purchase or transfer

d.An unregistered legal estate will now have to be entered into the register of title under its own independent title number

Is there such a thing as an equitable estate in land?

a.No. Equitable estates in land do not exist, as it is impossible for B to have an equitable right in relation to an estate in land

b.Yes. Whilst the wording of the Law of Property Act 1925 means that the term 'equitable estate' is not technically correct, it is possible for B to have an equitable right that is akin to a legal estate in land. In such a case, it would be better to call B's right an equitable estate in land

c.Yes. If, for example, A holds a legal freehold or lease on trust for B, then B has an 'equitable estate'

d.No. It is possible for B to have an equitable interest in land that is akin to a legal estate (as will occur, for example, where A holds a legal freehold or lease on trust for B). However, the wording of the Law of Property Act 1925 means that, in such a case, B's right is defined as an equitable interest, rather than an equitable estate

Which statutory section addresses interests that have been appropriately registered as a land charge and subsequently bind any person coming onto the land over which they exist?

a.Section 23 LPA 1969

b.Section 27 LPA 1927

c.Section 198 LPA 1925

d.Section 2 LCA 1972

FLK2 - Property Practice

Which of the following statements best describes the distinction between personal rights and property rights?

a. A personal right is a right against a particular person and can only be enforced against that person. A property right, in contrast, is a right that relates to a particular object and is capable of being enforced not just against one person, but against the rest of the world.

b. A personal right concerns only the actions of particular individuals and does not involve property.

c. A property right can be held only over land; all other rights are purely personal.

d. A personal right cannot bind a third party, whereas a property right will always do so.

Which one of the following statements is TRUE?

a. Where the bankrupt is also a trustee of the co-owned land, the trustee in bankruptcy will take over as trustee.

b. An application for sale by a trustee in bankruptcy is governed by ss 14 and 15 TLATA.

c. Bankruptcy is a form of severance.

d. Where an application for sale is made by a trustee in bankruptcy more than one year after bankruptcy is declared, an order for sale is inevitable.

Historically, the English mortgage has been described as a work of fiction. Why, in law, do you believe that this statement was made?

a.The borrower remains the owner of the mortgaged property subject to the mortgage held by the lender.

b.The lender is recognised as the legal owner of the mortgaged property and the borrower as the owner in equity.

c.The lender is the owner of the mortgaged property until the borrower repays the debt.

d.It was first described in John Galsworthy's novel 'The Man of Property'.

A disposal of a registered freehold / leasehold estate must itself be registered to convey legal title in accordance with which statutory provision?

a. Section 4 LRA 2002

b.Section 27 LRA 1925

c.Section 27 LRA 2002

d.Section 40 LRA 2002

Mark sells his house, which is unregistered land, to Rita. By mistake, the conveyance includes part of Diana's garden. Rita is registered as the first registered proprietor with absolute title of all the land in the conveyance, including the part which did not belong to Mark. What is the effect of the registration?

a.Since the bit of the land which is really part of Diana's garden did not belong to Mark, the registration will have no effect on that part, and Rita will be the owner of Mark's land only.

b.Rita is the equitable owner of the land.

c.Rita is the legal owner of all the land, even the bit which is really part of Diana's garden.

d.Since there is a mistake in the conveyance, the registration will have no effect. Mark and Diana will still be the owners of the land.

FLK2 - Wills & Admin of Estates

In relation to quick succession relief, if death occurs within 1 year, what percentage rate of relief is applicable?

a.100%

b.50%

c.25%

d.0%

e.75%

Who are the personal representatives?

a.The executor

b.The siblings of the deceased

c.The administrator

d.The executor where a Will has been duly executed and the administrator where the deceased dies intestate

e.The deceased’s spouse

Cohabitees are included within the category of applicants which may make a claim for financial provision against a deceased’s estate. What period of time is relevant to determine there has been no break during the cohabitation?

a.5 years

b.3 years

c.2 years

d.6 months

e.1 year

The issue of divorce is dealt with under the provisions of revocation of a will in terms which are regarded similar to which following example?

a. Separation

b. Engagement

c. Death

d. Marriage

e. Merger

One of the standards upon which to decide the grounds for reasonable financial provision is known as the spouse standard. What is the other ground known as?

a.The provision standard

b.The two-stage standard

c.The reasonable standard

d.The maintenance standard

e.The children standard

FLK2 - Trusts law

Where there has been a breach of a fiduciary duty, which of the following is not one of the likely consequences?

a.Dismantle the trust

b.Bring a personal claim for account of profits

c.Dismissing the fiduciary

d.Bring a proprietary claim to recover replacement property

e.Utilise tracing as a means to identify trust property if there is a proprietary claim

A constructive trust may arise in many different situations. Which of the following would not be a constructive trust?

a.Two parties have contributed financially to the purchase of land and hold that land in proportion to those contributions

b.A remedial institution which equity imposes regardless of actual or presumed intention

c.A person holds property in circumstances which in equity and good conscience should be held or enjoyed by another

d.The conscience of the recipient is bound in such a way as to justify equity in imposing a trust on him

e.Two parties have a common intention that both were to have an interest in land and one party acted to their detriment in reliance on that common intention

Imran wants to benefit the children of his son, Eesa, Musa and Maryam. All three grandchildren are under 5 years of age, and he does not know how they will develop and whether their needs will be the same in the future. He settles £250,000 on discretionary trusts. Twenty years later Eesa is a doctor, Musa is a barber at his own salon, and Maryam is a part-time librarian and severely physically disabled as a result of a car accident some years earlier. Which of the one of the following can the trustees do with regards to their discretion over both the capital and income of the trust fund?

a.A variation to remove all three of the son’s children as beneficiaries and replace them with Nadia and Nadim, the children of the settlor's daughter

b.A variation to reduce the tax liability of the children when they become entitled

c.A variation to defer their entitlement from the age of 21 to 25, in order that they are sufficiently mature

d.A variation to remove Eesa as a beneficiary because he doesn’t need the money

e.A variation to reduce Eesa’s and Musa's interest in favour of Maryam, as she is severely disabled and will require greater financial support throughout her life

Samuel leaves a trust in his will in order to provide for his three children after his death. The trust is named ‘The Children’s Trust’ and its terms are that the children have life interests, and the trust property is to be accumulated and paid to the children when they reach 21. There is an express term excluding the statutory power of maintenance in section 31 of the Trustee Act 1925. The children have various financial problems and ask the trustees for financial assistance. In particular the daughter aged 11 would like payment of her school fees where she can train for an acting career. Which of the following best describes the advice you would give to the trustees with regards to the daughter?

a.The trustees have discretion to do as they see fit and in the best interests of the daughter and should pay her school fees

b.The mother should pay for the daughter’s school fees

c.The daughter’s interest is contingent which means she cannot ask for the available income for maintenance

d.The exclusion of section 31 means that the daughter’s school fees cannot be paid

e.There is a previous life interest in ‘The Children’s Trust’ which means that maintenance is ruled out for the daughter.

What is the normal statutory limitation period to sue for breach of trust?

a.4 years

b.There is no time limit

c.12 years

d.6 years

e.3 years

FLK2 - Solicitors Accounts

If a breach is discovered in that money has been improperly withheld or withdrawn from a client account what action must be taken?

a.Any money improperly withheld or withdrawn from a client account must be immediately paid into the account or replaced as appropriate.

b.Any money improperly withheld or withdrawn from a client account must be paid into the account within 5 working days as appropriate.

c.Any money improperly withheld or withdrawn from a client account must be paid into the account within 24 hours as appropriate.

d.Any money improperly withheld or withdrawn from a client account must be paid into the account within 14 working days as appropriate.

A reconciliation statement shows:

a.The difference between credits and debits

b.The difference in balance between the accounting records and the relevant bank statement

c.The difference in value between client accounts

d.The difference between monthly drawings on the account

Money is held for the client for which of the following reasons:

a.To provide an opportunity for the firm to increase interest payments

b.To attract interest at a lower rate

c.To accumulate interest at a higher rate

d.Only to facilitate work for the client

The only rules within Part 2 of the SRA Accounts Rules that apply to joint accounts are:

a.8.1 and 8.2

b.8.2 and 8.4

c.8.3 and 8.4

d.8.4 and 8.6

There is a balance of £500 in the client ledger relating to your client in respect of a purchase. A survey fee is paid by the firm to the value of £400 plus VAT on behalf of the client. The invoice is addressed to the client. Identify the entries:

a.Client ledger: £480 CR office account - Cash ledger: £480 CR office account

b.Client ledger: £480 DR client account - Cash ledger: £480 DR client account

c.Client ledger: £480 DR office account - Cash ledger: £480 CR client account

d.Client ledger: £480 DR client account - Cash ledger: £480 CR client account

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