Period of Recognised Training / Training Contract Core Practice Areas Experience Flashcards

24 sample cards from the Core Practice Areas Experience deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What documents are required to incorporate a private company limited by shares under the Companies Act 2006?

   Form IN01 (application for registration), a memorandum of association (subscribers' statement), the articles of association (or reliance on the model articles), and the registration fee, all submitted to Companies House. A certificate of incorporation is then issued.

2. In corporate governance, what is the distinction between an ordinary resolution and a special resolution?

   An ordinary resolution requires a simple majority (over 50%) of votes. A special resolution requires at least 75% and is needed for major matters such as amending the articles, changing the company name, or reducing share capital.

3. Name three of the general duties owed by directors under the Companies Act 2006 (ss.171–177).

   Duty to act within powers (s.171), duty to promote the success of the company (s.172), duty to exercise independent judgment (s.173), duty to exercise reasonable care, skill and diligence (s.174), duty to avoid conflicts of interest (s.175), and duty to declare interests in proposed transactions (s.177).

4. In commercial contract drafting, distinguish a condition, a warranty and an innominate term.

   A condition is a fundamental term whose breach allows termination and damages. A warranty is a minor term whose breach gives only a right to damages. An innominate term's remedy depends on the seriousness of the actual consequences of the breach (the Hong Kong Fir approach).

5. What is the difference between an indemnity and a warranty in a commercial contract?

   A warranty is a contractual promise that a state of affairs is true; breach gives a damages claim subject to remoteness and mitigation. An indemnity is a promise to reimburse a specified loss on a pound-for-pound basis, generally without the need to prove remoteness or mitigation.

6. What is the difference between an exclusion clause and a limitation clause, and what statute governs their enforceability between businesses?

   An exclusion clause seeks to exclude liability entirely; a limitation clause caps liability at a stated amount. The Unfair Contract Terms Act 1977 subjects many such clauses to a reasonableness test in B2B contracts.

7. In M&A, what is the key difference between a share purchase and an asset purchase?

   In a share purchase the buyer acquires the company's shares and takes it with all its assets and liabilities. In an asset purchase the buyer cherry-picks specific assets and liabilities, leaving unwanted liabilities behind, but may require more third-party consents (e.g. to assign contracts).

8. What is the purpose of due diligence in a corporate acquisition, and what three main areas does it usually cover?

   Due diligence verifies the target's value and uncovers risks to inform price, warranties and indemnities. It typically covers legal due diligence, financial due diligence, and commercial/operational due diligence (and often tax).

9. In an M&A transaction, what is the function of warranties versus a disclosure letter?

   Warranties are seller's statements about the target's condition, giving the buyer a damages claim if untrue. The disclosure letter qualifies those warranties by revealing exceptions; properly disclosed matters cannot then be the basis of a warranty claim (caveat emptor on disclosed items).

10. What is the minimum continuous employment period generally required to claim ordinary unfair dismissal, and what are the five potentially fair reasons for dismissal?

    Generally two years' continuous service. The five potentially fair reasons are capability/qualifications, conduct, redundancy, statutory illegality, and 'some other substantial reason' (SOSR).

11. In employment law, distinguish wrongful dismissal from unfair dismissal.

    Wrongful dismissal is a contractual claim for dismissal in breach of contract (e.g. without proper notice), with no qualifying period. Unfair dismissal is a statutory claim concerning whether the reason and process were fair, normally requiring two years' service.

12. What are the nine protected characteristics under the Equality Act 2010?

    Age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

13. What are the formal requirements for a valid will under section 9 of the Wills Act 1837?

    The will must be in writing; signed by the testator (or by someone in their presence at their direction); the testator intended by signing to give effect to the will; the signature is made or acknowledged in the presence of two or more witnesses present at the same time; and each witness attests and signs in the testator's presence.

14. What is the difference between a grant of probate and letters of administration?

    A grant of probate is issued to executors named in a valid will, confirming their authority to administer the estate. Letters of administration are granted where there is no will (intestacy) or no willing/able executor, appointing administrators under the order of priority in the relevant rules.

15. Under the intestacy rules, what does a surviving spouse receive where the deceased also leaves children (England and Wales)?

    The spouse receives all personal chattels, a statutory legacy (a fixed sum, currently £322,000), and one half of the residue absolutely; the children share the other half of the residue on the statutory trusts.

16. Distinguish a fixed (bare) trust from a discretionary trust.

    In a fixed/bare trust the beneficiaries' interests are defined and the trustee holds for them absolutely. In a discretionary trust the trustees have discretion over how much, if anything, each potential beneficiary receives from the trust fund.

17. What are the three certainties required to create a valid express private trust (Knight v Knight)?

    Certainty of intention (an intention to create a trust), certainty of subject matter (identifiable trust property and beneficial shares), and certainty of objects (ascertainable beneficiaries).

18. What are the two main 'facts' a petitioner can rely on for divorce under the Divorce, Dissolution and Separation Act 2020?

    Since the 2020 Act, fault and separation facts were abolished and replaced by a single ground — irretrievable breakdown — established simply by a statement to that effect (no-fault divorce), which may be a sole or joint application.

19. What factors guide the court in financial remedy proceedings under section 25 of the Matrimonial Causes Act 1973?

    All circumstances, with first consideration to any children's welfare, including income and resources, financial needs and obligations, standard of living, age and duration of marriage, contributions, conduct (where relevant), and any benefits lost — applying the sharing, needs and compensation principles.

20. What is the difference between a Lasting Power of Attorney (LPA) for property and financial affairs and one for health and welfare?

    A property and financial affairs LPA can be used (once registered) while the donor still has capacity if they consent, covering money and property. A health and welfare LPA can only be used once the donor has lost capacity and covers decisions about care, treatment and (if expressly granted) life-sustaining treatment.

21. When can the Court of Protection make decisions, and on what statutory basis?

    The Court of Protection makes decisions for people who lack mental capacity under the Mental Capacity Act 2005, applying the best interests test (s.4) and the principle of the least restrictive option; it can appoint deputies where no valid LPA exists.

22. At a police station, what are the maximum detention periods before charge for a non-terrorism suspect under PACE 1984?

    Generally up to 24 hours, extendable to 36 hours by a superintendent, and up to 96 hours total with magistrates' authorisation. The suspect has the right to free legal advice and an appropriate adult if vulnerable.

23. How are criminal offences classified by mode of trial, and where is each tried?

    Summary-only offences are tried in the magistrates' court; either-way offences may be tried in the magistrates' or Crown Court depending on allocation and the defendant's election; indictable-only offences (e.g. murder, rape) must be tried in the Crown Court.

24. In judicial review, what are the three classic grounds on which a public body's decision may be challenged (per GCHQ)?

    Illegality (acting outside legal powers/ultra vires), irrationality (Wednesbury unreasonableness), and procedural impropriety (breach of natural justice or statutory procedure). Proportionality is an increasingly recognised additional ground, especially in human rights cases.

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