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FLK2: Functioning Legal Knowledge 2

Prepare for FLK2: Functioning Legal Knowledge 2 with SQE1 MCQ practice questions covering 72 topics. Build your knowledge, track your progress, and study effectively with Go SQE1.

Questions
3,041
Units
7
Topics
72

What’s in it.

7 units

Sample questions

3 of many

A few questions from this module, with the answer and a full explanation. The complete bank is available when you start practising.

  1. A firm discovers that it accidentally overpaid a surveyor GBP 500 from the client account, creating a shortfall on the client's ledger. Under the SRA Accounts Rules 2019, what must the firm do?

    • Deduct the GBP 500 from the client's next bill to offset the shortfall
    • Immediately transfer GBP 500 from the office account to the client account to restore the shortfall, and pursue recovery of the overpayment from the surveyor
      Correct answer
    • Transfer GBP 500 from another client's balance to cover the shortfall temporarily
    • Report the overpayment to the SRA and wait for their instructions before taking any action
    Explanation

    Under Rule 6.1, breaches must be remedied promptly. A shortfall on the client account means client money is missing and must be restored immediately from the firm's own funds (the office account). The firm may then pursue recovery of the overpayment from the surveyor separately. Using another client's money is prohibited, and waiting is not an option.

  2. Under Rule 8 of the SRA Accounts Rules 2019, accounting records must have which three characteristics?

    • They must be verified, standardised, and submitted to the SRA quarterly
    • They must be accurate, contemporaneous, and chronological
      Correct answer
    • They must be detailed, annual, and audited
    • They must be comprehensive, monthly, and signed off by a partner
    Explanation

    Rule 8 requires that records be accurate (correctly reflecting every transaction), contemporaneous (made at or near the time of the transaction), and chronological (recorded in date order). There is no requirement for them to be audited, electronic, or submitted to the SRA.

  3. A developer sells plots on a new estate. Each buyer covenants to contribute to the maintenance of shared roads and drains. One buyer later sells their plot to a new owner who refuses to contribute. Can the developer enforce the positive covenant against the new owner?

    • Yes, because the developer can enforce through the rule in Tulk v Moxhay
    • No, because the burden of a positive covenant does not pass to successors in title; the developer can only enforce against the original buyer under privity of contract, unless a workaround applies
      Correct answer
    • No, but the developer can apply to the Upper Tribunal to impose the obligation under s 84 LPA 1925
    • Yes, because the covenant benefits the land and therefore binds all owners
    Explanation

    The burden of a positive covenant (to contribute to maintenance) does not pass to successors at law (Rhone v Stephens [1994]) or in equity (Tulk v Moxhay only applies to restrictive covenants). The developer can only enforce against the original buyer under privity of contract. Workarounds include: indemnity covenants (chain of covenants back to the original buyer), Halsall v Brizell (if the new owner takes the benefit of the roads, they must accept the burden), a restriction on the register requiring new buyers to covenant, or using a long lease structure. Section 84 deals with discharge of restrictive covenants, not enforcement of positive ones.