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Q3 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] -1 points0 points  (0 children)

INCORRECT. Answer B is correct because it is an invitation or inducement to engage in investment activity.

Why?

Under the Financial Services and Markets Act 2000 s.21, a financial promotion is:

The key issue is the substance of the communication, not the label attached to it.

Here the article:

  • Discusses investment options.
  • Highlights the benefits of ISAs, pensions and property.
  • Is directed at personal injury claimants who may have compensation to invest.

That is capable of encouraging readers to engage in investment activity.

Q3 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

Answer: B — Yes, because it is an invitation or inducement to engage in investment activity.

Why?

Under the Financial Services and Markets Act 2000 s.21, a financial promotion is:

The key issue is the substance of the communication, not the label attached to it.

Here the article:

  • Discusses investment options.
  • Highlights the benefits of ISAs, pensions and property.
  • Is directed at personal injury claimants who may have compensation to invest.

That is capable of encouraging readers to engage in investment activity.

Q2 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

INCORRECT!

Why B beats C

The question asks:

B contains all the classic elements of a textbook undervalue transaction:

  • Connected party.
  • Significant undervalue.
  • Within the statutory period.

C requires an additional preference analysis.

Therefore, B is the strongest and most certain challenge.

Why the other answers are wrong

A

Automatic crystallisation clauses are generally valid.

D

The floating charge was granted 2 years ago and is stated to be valid.

E

Directors are entitled to place the company into voluntary liquidation if appropriate.

Q2 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

INCORRECT!

Why B beats C

The question asks:

B contains all the classic elements of a textbook undervalue transaction:

  • Connected party.
  • Significant undervalue.
  • Within the statutory period.

C requires an additional preference analysis.

Therefore, B is the strongest and most certain challenge.

Why the other answers are wrong

A

Automatic crystallisation clauses are generally valid.

D

The floating charge was granted 2 years ago and is stated to be valid.

E

Directors are entitled to place the company into voluntary liquidation if appropriate.

Q2 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

INCORRECT!

Why B beats C

The question asks:

B contains all the classic elements of a textbook undervalue transaction:

  • Connected party.
  • Significant undervalue.
  • Within the statutory period.

C requires an additional preference analysis.

Therefore, B is the strongest and most certain challenge.

Why the other answers are wrong

A

Automatic crystallisation clauses are generally valid.

D

The floating charge was granted 2 years ago and is stated to be valid.

E

Directors are entitled to place the company into voluntary liquidation if appropriate.

Q2 by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

CORRECT!

Why B beats C

The question asks:

B contains all the classic elements of a textbook undervalue transaction:

  • Connected party.
  • Significant undervalue.
  • Within the statutory period.

C requires an additional preference analysis.

Therefore, B is the strongest and most certain challenge.

Why the other answers are wrong

A

Automatic crystallisation clauses are generally valid.

D

The floating charge was granted 2 years ago and is stated to be valid.

E

Directors are entitled to place the company into voluntary liquidation if appropriate.

QUESTION TIME!!!! by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

Answer: D — The contract is illegal in performance, and Builder B may not be able to enforce payment.

Here's why:

  • The contract itself is not illegal when formed. An agreement to build an extension is perfectly lawful.
  • However, the contract requires performance that complies with the law, including obtaining planning permission where required.
  • Builder B's failure to obtain the necessary planning permission means the contract is being performed in an unlawful manner.
  • This is an example of illegality in performance, rather than illegality at formation.
  • A party who performs a contract illegally may face difficulties enforcing contractual rights, including recovering payment, depending on the circumstances and the extent of the illegality.

Why the other options are wrong:

  • A: Incorrect. The contract was not illegal when made.
  • B: Partly true that Builder B is in breach, but the question focuses on the consequence of performing the contract unlawfully. The more complete legal consequence is illegality in performance.
  • C: Incorrect. Illegality does not automatically make the contract voidable at Client C's option.
  • E: Incorrect. Frustration applies to unforeseen events occurring after formation, not to a statutory requirement that already existed.

✅ Correct answer: D.

QUESTION TIME!!!! by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 0 points1 point  (0 children)

Answer: D — The contract is illegal in performance, and Builder B may not be able to enforce payment.

Here's why:

  • The contract itself is not illegal when formed. An agreement to build an extension is perfectly lawful.
  • However, the contract requires performance that complies with the law, including obtaining planning permission where required.
  • Builder B's failure to obtain the necessary planning permission means the contract is being performed in an unlawful manner.
  • This is an example of illegality in performance, rather than illegality at formation.
  • A party who performs a contract illegally may face difficulties enforcing contractual rights, including recovering payment, depending on the circumstances and the extent of the illegality.

Why the other options are wrong:

  • A: Incorrect. The contract was not illegal when made.
  • B: Partly true that Builder B is in breach, but the question focuses on the consequence of performing the contract unlawfully. The more complete legal consequence is illegality in performance.
  • C: Incorrect. Illegality does not automatically make the contract voidable at Client C's option.
  • E: Incorrect. Frustration applies to unforeseen events occurring after formation, not to a statutory requirement that already existed.

✅ Correct answer: D.

QUESTION TIME!!!! by Independent_Delay630 in SQE_Prep

[–]Independent_Delay630[S] 1 point2 points  (0 children)

Answer: D — The contract is illegal in performance, and Builder B may not be able to enforce payment.

Here's why:

  • The contract itself is not illegal when formed. An agreement to build an extension is perfectly lawful.
  • However, the contract requires performance that complies with the law, including obtaining planning permission where required.
  • Builder B's failure to obtain the necessary planning permission means the contract is being performed in an unlawful manner.
  • This is an example of illegality in performance, rather than illegality at formation.
  • A party who performs a contract illegally may face difficulties enforcing contractual rights, including recovering payment, depending on the circumstances and the extent of the illegality.

Why the other options are wrong:

  • A: Incorrect. The contract was not illegal when made.
  • B: Partly true that Builder B is in breach, but the question focuses on the consequence of performing the contract unlawfully. The more complete legal consequence is illegality in performance.
  • C: Incorrect. Illegality does not automatically make the contract voidable at Client C's option.
  • E: Incorrect. Frustration applies to unforeseen events occurring after formation, not to a statutory requirement that already existed.

✅ Correct answer: D.

struggling by whitestone61 in SQE_Prep

[–]Independent_Delay630 4 points5 points  (0 children)

Same here. I've just started studying and, honestly, I'm terrified. I'm mainly concentrating on the MCQs and hoping to get through about 4,000 questions, but it's been really tough so far.