SQE1 cheat sheet

Section 1 Partnership Act 1890 defines a partnership as the relation which subsists between persons carrying on a business in common with a view of profit.

Partners are jointly liable for contracts (s.9 PA 1890) and jointly and severally liable for wrongful acts and misapplication of money (ss.10-12).

An LLP has separate legal personality under the Limited Liability Partnerships Act 2000; members' liability is limited to capital contributed and at least two designated members must be appointed.

Directors' general duties under ss.171-177 CA 2006: act within powers; promote the success of the company for members as a whole; exercise independent judgment; reasonable care, skill and diligence; avoid conflicts; not accept benefits from third parties; declare interests in proposed transactions.

An ordinary resolution requires a simple majority of votes cast; a special resolution requires at least 75%. Removal of a director under s.168 CA 2006 requires an ordinary resolution on special notice of 28 days.

Dividends may be paid only out of distributable profits (s.830 CA 2006); an unlawful distribution is repayable by a recipient who knew or had reasonable grounds to know of the impropriety.

Loans and quasi-loans to a director exceeding £10,000 require members' approval (ss.197-200 CA 2006).

Wrongful trading (s.214 Insolvency Act 1986) applies where a director knew or ought to have concluded that insolvent liquidation was inevitable; the court may order a contribution to the company's assets.

Salomon v A Salomon & Co Ltd (1897) establishes that a company is a separate legal person distinct from its shareholders and directors.

Limitation periods: 6 years for contract and most tort claims, 12 years for deeds, 3 years for personal injury and 1 year for defamation (Limitation Act 1980).

Track allocation: small claims track up to £10,000; fast track £10,000-£25,000; multi-track above £25,000 (personal injury claims generally capped at £25,000 on the fast track).

A Part 36 offer is made without prejudice save as to costs; a claimant who beats its own offer obtains indemnity costs, enhanced interest and a 10% uplift on damages, capped at £500,000.

Summary judgment under CPR Part 24 is granted where the claim or defence has no real prospect of success and there is no other compelling reason for a trial.

Standard disclosure under CPR Part 31 covers documents on which a party relies, documents adversely affecting its own case or supporting another party's case, and documents required by a practice direction.

Halsey v Milton Keynes General NHS Trust (2004): courts cannot compel parties to mediate, but unreasonable refusal to mediate may be penalised in costs.

Judicial review must be brought promptly and in any event within three months of the decision (CPR 54.5).

Costs follow the event under CPR Part 44; the unsuccessful party normally pays the successful party's costs on the standard basis.

Pre-action protocols and the Practice Direction on Pre-Action Conduct require exchange of information before issue; non-compliance may lead to costs orders and reduced interest.

An offer must be distinguished from an invitation to treat: shop displays (Fisher v Bell), advertisements (Partridge v Crittenden) and auctioneer's calls are generally invitations to treat.

Under the postal rule (Adams v Lindsell) acceptance is effective on posting where the letter is properly addressed; the rule does not apply to instantaneous communications.

Consideration must be sufficient but need not be adequate; past consideration is not good consideration (Re McArdle).

Promissory estoppel (Central London Property Trust v High Trees House) requires a clear promise, reliance, inequity in resiling, and is generally suspensory only.

Commercial agreements are presumed to be intended to create legal relations; domestic and social agreements are presumed not to be (Balfour v Balfour).

Remoteness in contract follows Hadley v Baxendale: recoverable losses arise naturally from the breach or were within both parties' contemplation at the time of contracting.

The Contracts (Rights of Third Parties) Act 1999 allows a third party to enforce a term where the contract expressly so provides or the term purports to confer a benefit on that third party.

Under UCTA 1977 liability for death or personal injury caused by negligence cannot be excluded; the Consumer Rights Act 2015 regulates equivalent terms in consumer contracts.

Frustration discharges a contract where an event renders performance impossible or radically different (Taylor v Caldwell); the Law Reform (Frustrated Contracts) Act 1943 governs restitution.

The elements of negligence are duty of care, breach, factual causation ('but for' test) and remoteness of damage (Overseas Tankship v Morts Dock, The Wagon Mound).

The Caparo test asks whether damage was reasonably foreseeable, whether there was proximity, and whether it is fair, just and reasonable to impose a duty.

The Occupiers' Liability Act 1957 imposes the common duty of care towards visitors; the Occupiers' Liability Act 1984 covers non-visitors and applies to risks of which the occupier is aware.

Under s.1 Defamation Act 2013 a statement is not defamatory unless its publication has caused or is likely to cause serious harm to the claimant's reputation.

Contributory negligence under the Law Reform (Contributory Negligence) Act 1945 reduces damages to the extent the claimant is responsible for the loss.

Vicarious liability requires an employment relationship (or one akin to employment) and a tort committed in the course of that employment.

Rylands v Fletcher imposes strict liability where a dangerous thing escapes from a non-natural use of land and causes foreseeable damage.

Private nuisance is an unreasonable and substantial interference with another's use and enjoyment of land, actionable only by a person with a proprietary interest in the affected land.

Personal injury claims must be brought within three years of the injury or the date of knowledge (Limitation Act 1980 s.11).

The civil hierarchy runs: County Court and High Court; Court of Appeal (Civil Division); Supreme Court. The High Court's divisions are King's Bench, Chancery and Family.

The ratio decidendi binds lower courts; obiter dicta are persuasive. Distinguishing, overruling and reversing are the techniques for avoiding precedent.

The Court of Appeal is bound by its own previous decisions save for the Young v Bristol Aeroplane exceptions: conflicting Court of Appeal decisions, a later Supreme Court decision, or a decision made per incuriam.

Supreme Court decisions bind all lower courts, but the Supreme Court may depart from its own earlier decisions under the 1966 Practice Statement.

Under s.3 Human Rights Act 1998 courts must read legislation compatibly with Convention rights so far as possible; s.4 permits a declaration of incompatibility.

Civil juries are available in defamation, malicious prosecution, false imprisonment and fraud.

The European Union (Withdrawal) Act 2018 preserved retained EU law; the Retained EU Law (Revocation and Reform) Act 2023 renamed it 'assimilated law' and removed the supremacy of EU law.

Solicitors are regulated by the SRA; the SRA Principles 2019 comprise seven mandatory principles, including upholding the rule of law and the proper administration of justice.

Appeals from the Crown Court go to the Court of Appeal (Criminal Division); a prosecution appeal on a point of law may go to the Supreme Court under s.33 Criminal Appeal Act 1968.

Parliamentary sovereignty (Dicey) means Parliament may make or unmake any law; later statutes impliedly repeal inconsistent earlier statutes.

The rule of law requires legality, certainty, due process and equality before the law; Entick v Carrington confirms that executive action requires legal authority.

The grounds of judicial review are illegality, irrationality (Wednesbury unreasonableness), procedural impropriety and, where Convention rights are engaged, proportionality.

Judicial review remedies are quashing orders, mandatory orders, prohibiting orders, declarations and injunctions; damages are available only in limited circumstances.

A claimant requires sufficient interest (standing) under s.31 Senior Courts Act 1981; the CPR 54.5 time limit is promptly and no later than three months.

EU law principles: supremacy (Costa v ENEL), direct effect (Van Gend en Loos), indirect effect (Marleasing) and state liability for breach (Francovich).

The royal prerogative comprises residual executive powers recognised at common law and is in principle subject to judicial review (Miller; Cherry).

Retained direct EU legislation under s.3 EUWA 2018 operates as domestic law; s.4 preserves rights and remedies that arose before exit day.

The Sewel convention provides that Westminster will not normally legislate on devolved matters without the devolved legislature's consent; it is not legally enforceable (Miller).

Murder requires the unlawful killing of a human being with malice aforethought (intention to kill or to cause grievous bodily harm) and carries a mandatory life sentence.

Voluntary manslaughter is available through loss of control (s.54 Coroners and Justice Act 2009), diminished responsibility (s.2 Homicide Act 1957) and suicide pact (s.4 Homicide Act 1957).

Theft under s.1 Theft Act 1968 requires dishonest appropriation of property belonging to another with intention permanently to deprive; s.2 sets out situations where appropriation is not dishonest.

Robbery (s.8 Theft Act 1968) is theft where force, or the threat of force, is used immediately before or at the time of stealing in order to steal.

Burglary under s.9 Theft Act 1968 requires entry to a building or part of a building as a trespasser with intent to commit theft, grievous bodily harm or criminal damage, or the commission of such an offence after entry.

Fraud Act 2006 creates fraud by false representation (s.2), by failing to disclose information (s.3) and by abuse of position (s.4); each requires dishonesty and an intention to gain or cause loss.

Assault occasioning actual bodily harm is charged under s.47 Offences Against the Person Act 1861; grievous bodily harm under s.20 (maliciously) and s.18 (with intent).

The prosecution bears the burden of proving every element beyond reasonable doubt; insanity and diminished responsibility are proved by the defence on the balance of probabilities.

Bail is governed by the Bail Act 1976; there is a general right to bail subject to the Schedule 1 exceptions, including substantial grounds to believe the defendant would fail to surrender or commit further offences.

A contract for the sale of land must be in writing, signed by both parties and incorporate all terms expressly agreed (s.2 Law of Property (Miscellaneous Provisions) Act 1989).

Standard pre-contract investigations include the CPSE enquiries, a local authority search (LLC1 and CON29), a water and drainage search, an environmental search and a chancel repair search.

Exchange of contracts creates a binding obligation to complete; the deposit is usually 10% of the purchase price.

Residential SDLT rates: 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000 and 12% above £1,500,000; first-time buyer relief applies up to £425,000.

A lease confers exclusive possession for a fixed term at a rent; absence of exclusive possession indicates a licence (Street v Mountford).

Business tenancies under Part II Landlord and Tenant Act 1954 are protected and renewed by a s.25 landlord's notice or a s.26 tenant's request; grounds of opposition appear in s.30.

Compulsory first registration is triggered by transfers, leases of more than seven years, gifts and mortgages of unregistered land (s.4 Land Registration Act 2002).

For registered land title is proved by an official copy of the register; for unregistered land a root of title of at least 15 years must be shown.

Completion statements reconcile apportionments of rent, service charges and other outgoings between the parties as at the completion date.

Section 9 Wills Act 1837 requires a will to be in writing, signed by the testator (or by someone in the testator's presence and direction) and attested by two witnesses present at the same time.

Testamentary capacity requires the testator to understand the nature of making a will, the extent of the property and the claims of those reasonably expected to benefit (Banks v Goodfellow).

Marriage or civil partnership revokes a will (s.18 Wills Act 1837) unless the will was made in contemplation of that marriage or civil partnership.

On intestacy with children, the surviving spouse or civil partner takes the personal chattels, a statutory legacy (currently £322,000) with interest, and half of the residue on statutory trusts (s.46 Administration of Estates Act 1925).

The inheritance tax nil rate band is £325,000; the residence nil rate band is up to £175,000 where the main residence passes to direct descendants.

Inheritance tax is charged at 40% above the nil rate band, reduced to 36% where at least 10% of the net estate is left to charity.

Lifetime gifts are potentially exempt transfers which become exempt if the donor survives seven years; taper relief reduces the tax on failed PETs.

Executors derive title from the grant of probate; administrators derive title from letters of administration.

Section 27 Trustee Act 1925 protects personal representatives who advertise for claims before distributing, and s.34 Administration of Estates Act 1925 sets the order in which assets are applied to debts.

Client money is money held or received for a client in connection with regulated services (SRA Accounts Rules 2019, rule 2) and must be paid promptly into a client account.

Money received for fees and disbursements must be paid into the business account, or if paid into client account must be transferred out within 14 days of a bill being delivered and no later than five weeks after receipt.

Where a receipt is mixed (part client money, part business money), the whole sum may be paid into client account, or the client portion into client account and the business portion into business account promptly.

Residual balances must be returned to the client promptly; if a balance cannot be returned after reasonable attempts, the solicitor must investigate, account for it and report to the SRA where appropriate.

Interest must be paid to clients where it is fair and reasonable to do so, having regard to the amount held, the length of time and prevailing interest rates (rule 7).

A client account must be held at a bank or building society in England and Wales; a designated client account may be used to hold money for a single client.

Records must include a ledger for each client and for the business, showing all receipts and payments and reconcilable at all times to the bank statements.

Money held for a third party, such as an insurer, may be held in a third-party managed account and does not constitute client money.

Section 1 Law of Property Act 1925 recognises two legal estates: the fee simple absolute in possession (freehold) and the term of years absolute (leasehold).

Legal interests include easements, rentcharges, charges and rights of entry; all other interests, including beneficial interests under a trust, are equitable.

Registration of the dispositions listed in s.27 Land Registration Act 2002 (transfers, leases over seven years, mortgages, express grants of easements) is required to complete the transaction.

An easement requires a dominant and servient tenement, diversity of ownership, benefit to the dominant land and a right capable of forming the subject matter of a grant (Re Ellenborough Park).

Restrictive covenants bind successors in equity (Tulk v Moxhay); the benefit passes under s.78 LPA 1925 and the burden under s.79 LPA 1925 where the covenant touches and concerns the land.

Co-owners may hold as joint tenants (no distinct shares, right of survivorship) or tenants in common (distinct shares, no survivorship); severance may occur under s.36(2) LPA 1925.

Adverse possession of registered land requires ten years' occupation; the registered proprietor is notified and may defeat the application, subject to the exceptions in Schedule 6 Land Registration Act 2002.

The Landlord and Tenant (Covenants) Act 1995 abolished privity of contract for new leases: the original tenant is released on assignment and the assignee becomes liable.

A mortgagee's implied power of sale arises under s.101 LPA 1925 once the legal date for redemption has passed, but s.103 requires a default notice and a specified period before sale.

A valid trust requires the three certainties: certainty of intention, certainty of subject matter and certainty of objects (Knight v Knight).

A declaration of trust of land must be evidenced in writing and signed by the declarant (s.53(1)(b) LPA 1925); a disposition of an equitable interest must be in writing (s.53(1)(c)).

Equity will not perfect an imperfect gift: the transfer must be properly constituted (Milroy v Lord), unless a recognised exception such as the rule in Strong v Bird applies.

Trustees are fiduciaries: they must not place themselves in a position of conflict, must not profit from the trust, and are subject to the self-dealing and fair-dealing rules.

Trustees have a statutory duty of care (s.1 Trustee Act 2000) and a general power of investment (s.3 Trustee Act 2000), exercisable having regard to the standard investment criteria and the need for diversification.

Beneficiaries may trace trust property into its substitute; tracing is available at common law and in equity, and equitable tracing is the more flexible.

Charitable trusts must pursue a purpose within s.3 Charities Act 2011 and be for the public benefit; where the purpose fails, a cy-près scheme may be applied.

Constructive trusts arise by operation of law where it would be unconscionable for the legal owner to deny the claimant a beneficial interest (Lloyds Bank v Rosset).