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Questions and Answers
What is a primary characteristic of a legal person?
What is a primary characteristic of a legal person?
Which of the following is an example of a composite legal person?
Which of the following is an example of a composite legal person?
How does legal personality benefit the members of a composite person, such as a corporation?
How does legal personality benefit the members of a composite person, such as a corporation?
What is the primary purpose of a power of attorney document?
What is the primary purpose of a power of attorney document?
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Which of the following scenarios typically requires a power of attorney document?
Which of the following scenarios typically requires a power of attorney document?
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Why might a legal person be required to pay tax?
Why might a legal person be required to pay tax?
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How can legal personality affect the actions of an entity?
How can legal personality affect the actions of an entity?
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What is an important distinction between a legal person and a natural person?
What is an important distinction between a legal person and a natural person?
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What is the first step in forming a contract or agreement?
What is the first step in forming a contract or agreement?
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Which factor is necessary for a contract to be deemed complete?
Which factor is necessary for a contract to be deemed complete?
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What does 'consideration' mean in the context of contracts?
What does 'consideration' mean in the context of contracts?
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When is a contract deemed not enforceable by law?
When is a contract deemed not enforceable by law?
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In a contract, what does 'acceptance' primarily signify?
In a contract, what does 'acceptance' primarily signify?
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Which of these elements is NOT typically required for a contract to be valid?
Which of these elements is NOT typically required for a contract to be valid?
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What was the primary legislation that introduced the Lasting Power of Attorney (LPA)?
What was the primary legislation that introduced the Lasting Power of Attorney (LPA)?
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When a party argues that there was no intention to form a binding contract, what is the likely next step?
When a party argues that there was no intention to form a binding contract, what is the likely next step?
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Which of the following is NOT a type of Lasting Power of Attorney?
Which of the following is NOT a type of Lasting Power of Attorney?
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What is the role of terms and conditions in a contract?
What is the role of terms and conditions in a contract?
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When may an agreement NOT become a legally binding contract?
When may an agreement NOT become a legally binding contract?
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What is a key difference between an Enduring Power of Attorney (EPA) created before 2007 and a Lasting Power of Attorney (LPA)?
What is a key difference between an Enduring Power of Attorney (EPA) created before 2007 and a Lasting Power of Attorney (LPA)?
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What is generally required to prove the existence of a contract if a dispute arises?
What is generally required to prove the existence of a contract if a dispute arises?
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What does the court place strong emphasis on when dealing with a contract dispute?
What does the court place strong emphasis on when dealing with a contract dispute?
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An individual wants to grant someone the ability to make decisions about their personal healthcare and welfare. Which type of LPA should they grant?
An individual wants to grant someone the ability to make decisions about their personal healthcare and welfare. Which type of LPA should they grant?
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When is a contract considered incomplete?
When is a contract considered incomplete?
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What is the fundamental purpose of a contract?
What is the fundamental purpose of a contract?
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What is a key characteristic of contract terms and conditions?
What is a key characteristic of contract terms and conditions?
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Which two conditions must exist for a contract to be legally considered binding?
Which two conditions must exist for a contract to be legally considered binding?
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What will judges typically do when contract terms are unclear?
What will judges typically do when contract terms are unclear?
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If an Enduring Power of Attorney (EPA) was created in 2006, does it need to be altered after the Mental Capacity Act 2005 was enforced?
If an Enduring Power of Attorney (EPA) was created in 2006, does it need to be altered after the Mental Capacity Act 2005 was enforced?
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An elderly person wants to appoint someone to manage their financial assets. Which type of LPA will be appropriate?
An elderly person wants to appoint someone to manage their financial assets. Which type of LPA will be appropriate?
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Why does it generally make sense to have written contracts?
Why does it generally make sense to have written contracts?
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Under what circumstances can an oral agreement be upheld as a contract?
Under what circumstances can an oral agreement be upheld as a contract?
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When a court reviews a contract dispute without a written agreement, what is the primary factor the judge considers?
When a court reviews a contract dispute without a written agreement, what is the primary factor the judge considers?
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Which of the following describes 'performance' as a method of contract discharge?
Which of the following describes 'performance' as a method of contract discharge?
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What legal term describes a situation where unexpected events make it impossible to complete a contract?
What legal term describes a situation where unexpected events make it impossible to complete a contract?
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In the context of contract law, what is a 'breach'?
In the context of contract law, what is a 'breach'?
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According to the provided text, if work carried out under a contract is defective, this would be considered a form of:
According to the provided text, if work carried out under a contract is defective, this would be considered a form of:
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Which scenario best illustrates a contract coming to an end due to 'agreement'?
Which scenario best illustrates a contract coming to an end due to 'agreement'?
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What could a court do if a contract has been breached?
What could a court do if a contract has been breached?
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What happens if one party makes it known that they will not comply with their obligations as laid out in a contract?
What happens if one party makes it known that they will not comply with their obligations as laid out in a contract?
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Study Notes
Legal Persons and Power of Attorney
- Legal persons have rights, responsibilities, and privileges, like natural persons.
- Examples include companies, sovereign states, and cooperatives.
- Legal personality allows a group of individuals to act as a single entity.
- This separation allows the entity to perform legal actions, like entering contracts or owning property, without affecting individual members' liability.
- A power of attorney is a legal document that allows one person to authorize another to make decisions about their finances or personal welfare.
- Enduring Power of Attorney (EPA) and Lasting Power of Attorney (LPA) are two types of power of attorney.
- The Mental Capacity Act 2005 created LPA in 2007 which replaced EPA.
- EPAs created before 2007 remain valid.
- LPA can be divided into property and affairs and a personal welfare type.
- LPA must be registered with the Office of the Public Guardian to be effective.
Basic Law of Contract
- A contract is an agreement defining obligations between two or more parties.
- Essential elements are offer and acceptance for a binding contract.
- Other elements may be required by law for a contract to be legal.
- Acceptance is a willingness to be bound by the terms of the offer.
- Specific terms and conditions of the contract must be agreed and clear, for a contract to be complete.
- Consideration is something of value exchanged between parties for a binding agreement.
- Mutual consideration is required on both sides (one side provides service, the other pays in return).
Intention
- If parties make an agreement with no intention of it being legally binding, it's not a contract.
- Clear written evidence is necessary if one seeks to argue that there was never intent to form a legally binding contract.
Terms and Conditions
- Terms and conditions in a contract are crucial.
- Ambiguous or unclear terms make a contract legally questionable or invalid.
- Courts may clarify the terms and conditions of a contract if they are in dispute.
Types of Contract
- Written contracts are generally preferred.
- Oral contracts are also valid in certain circumstances.
- Lack of written contracts may be considered with the practical execution of an agreement.
Contract Discharge
- Contract discharge concludes the contract's agreement or obligations.
- This happens in four possible ways
- Performance
- Agreement
- Frustration
- Breach
Breaching a contract
- Breaching a contract means failing to meet terms and conditions.
- This occurs when one party does not fulfill promises or specified parameters of a contract.
- Courts may award financial compensation to the innocent party for damages if a breach occurs.
Ownership of Property
- Two types of property ownership: legal and beneficial
- Legal owners are identified in title documents.
- Beneficial owners have the right to use or control the property.
Insolvency and Bankruptcy
- Insolvency: when a company cannot meet its debt obligations.
- Bankruptcy is a legal process impacting companies or individuals when liabilities exceed assets.
- Liquidation: legal process for company dissolution and asset distribution to creditors
- Alternatives are administration and voluntary arrangements.
- Creditors pursue compensation/settlement if debts cannot be met.
Wills and Intestacy
- A will is a written document detailing how a deceased person's property will be distributed.
- Valid wills must be in writing and signed by two witnesses.
- The testator (will maker) must be over 18 and mentally competent.
- Intestacy: When someone dies without a valid will, intestacy laws will determine who inherits.
The Main Types of Trusts and Their Uses
- Trust is an agreement where a settlor transfers property to a trustee for a specified beneficiary.
- A bare/absolute trust, holds assets legally for a designated recipient.
- Interest in possession trusts: trust property benefits beneficiaries until their death.
- Charitable trust: established for purposes that benefit the common good.
- Discretionary trusts: trustees have the discretion on how much and to whom assets are distributed.
The Main Duties and Powers of a Trustee
- Trustees invest the funds in suitable investments.
- Trustees act impartially, avoiding favoritism among beneficiaries.
- Trustees seek proper and suitable advice.
- Trustees distribute assets in a timely and fitting manner
- Trustees ensure the security of the assets and property.
- Trustees maintain proper records of all their actions.
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Description
Test your knowledge on legal persons, their rights, and the concept of power of attorney, including the different types such as Enduring and Lasting Power of Attorney. This quiz covers essential legal principles that govern entities and their decision-making capacities. Gain a better understanding of how these legal frameworks operate.
