Legal Principles in ADR and Contracts

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is typically required before dividends can be paid?

A cash reserve must be established

Shareholders must approve the payment

A company must prepare its financial statements

A company must have declared a profit after paying HMRC (correct)

What is the purpose of a suspicious activity report?

To request funding from financial institutions

To inform companies about financial audits

To report potential money laundering to the NCA (correct)

To declare taxable income to HMRC

What happens if frustration discharges a contract?

The contract becomes invalid, requiring a new one to be drafted.

Future obligations are discharged, but past actions remain enforceable. (correct)

Only one party can claim damages for breach.

The entire contract is automatically terminated without any further obligations.

What statutory instrument allows the government to amend laws quickly to comply with the HRA?

Remedial orders Signup and view all the answers

What is the limitation period for tort claims relating to personal injury?

Three years from the date of knowledge or six years from the incident Signup and view all the answers

Under what conditions can a case go straight from the High Court to the Supreme Court?

Only in cases of national importance on a point of law Signup and view all the answers

What characterizes an innominate term in a contract?

Its breach deprives the innocent party of most of the contract's benefit. Signup and view all the answers

In cases of mesothelioma, who can clients claim damages from?

All responsible persons who are jointly and severally liable Signup and view all the answers

What is required before making an interim payment application in a civil case?

Acknowledgement of service is sufficient. Signup and view all the answers

What must be returned by a minor when a contract is voidable due to lack of capacity?

Goods acquired if it is just and equitable. Signup and view all the answers

Which of the following is true regarding exemption clauses in contracts?

They must be reasonable for business-to-business transactions. Signup and view all the answers

How long is the typical time limit for enforcing a Tomlin order as a binding contract?

6 years for breach of contract. Signup and view all the answers

Which statement is correct regarding the rights of solicitors on appeal?

A solicitor may have rights of audience on an appeal even without higher rights. Signup and view all the answers

What is required for a partnership to be held liable for actions taken by one of its members?

Ostensible authority is sufficient for liability. Signup and view all the answers

Which of the following is true regarding the updating of a client about costs?

Clients should be informed about all additional costs incurred. Signup and view all the answers

What happens if a claim form is served outside England and Wales?

It must be served within six months after permission from court. Signup and view all the answers

What distinguishes reckless misrepresentation from other forms of misrepresentation?

It addresses losses that are directly foreseeable. Signup and view all the answers

What are solicitors required to do concerning their clients' identities?

Conduct ongoing monitoring of clients' identities. Signup and view all the answers

What is the implication if a document is deemed served on the second day after being sent?

It is effective as service even without delivery confirmation. Signup and view all the answers

What percentage of control qualifies someone as a Person with Significant Control (PSC) in a company?

25% or more Signup and view all the answers

Which of the following is not true regarding identifying a client?

A passport is always required for identification. Signup and view all the answers

In the context of legal partnerships, what does an indemnity signify?

The main obligation that can be enforced immediately. Signup and view all the answers

What consequence does the absence of a start date have on the enforcement of a bill?

It automatically comes into force upon royal assent. Signup and view all the answers

What is the legal implication if a claim for economic loss does not show direct damage to property?

The claim fails as it requires direct damage for validity. Signup and view all the answers

What constitutes aggravated trespass?

Trespassing with intent to disrupt lawful activities Signup and view all the answers

Which of the following is NOT considered a primary victim in tort law?

A bystander witnessing the event Signup and view all the answers

Which condition must be met for a secondary victim to have a claim?

Having close ties to the primary victim Signup and view all the answers

What is required to constitute a breach of the peace?

Actual violence or the threat of violence Signup and view all the answers

Which of the following does NOT qualify as a medically recognized psychiatric injury?

Sadness Signup and view all the answers

What is the main criteria for claiming missing chance in tort law?

The chance must be less than 50% Signup and view all the answers

Under which act do lawful visitors have rights related to occupiers' liability?

Occupiers Liability Act 1956 Signup and view all the answers

Which of these describes specified activities in relation to investment?

Actively involved in the management of investments Signup and view all the answers

Which condition indicates that an individual may be considered insolvent?

A debt is payable immediately or at a certain time in the future, and the debtor appears unable to pay it. Signup and view all the answers

What is a statutory demand?

A formal document demanding payment for a debt. Signup and view all the answers

What is required for a creditor to present a bankruptcy petition?

The debtor must be unable to pay a debt of at least £5,000. Signup and view all the answers

What is the minimum amount of unsecured liabilities for a Debt Relief Order application?

£30,000 Signup and view all the answers

Which of the following is a method to demonstrate an inability to pay a debt?

A statutory demand for an unsecured sum of at least £5,000 has been served and remains unpaid. Signup and view all the answers

What is an Individual Voluntary Arrangement (IVA)?

A binding agreement between the debtor and unsecured creditors. Signup and view all the answers

Which of the following statements is true about a Debt Relief Order (DRO)?

A debtor cannot have a vehicle worth more than £2,000. Signup and view all the answers

Who benefits from the order of distribution during bankruptcy?

Secured creditors, preferential debts, unsecured creditors, and postponed creditors. Signup and view all the answers

What is the maximum lifetime limit for gains taxed under Business Asset Disposal Relief (BADR)?

£1,000,000 Signup and view all the answers

Which criterion must be satisfied for the sale or gift of assets to qualify as a reduction in shareholding?

Assets must have been owned for at least three years and used by the business for the last two years. Signup and view all the answers

What relief postpones payment of capital gains tax until the eventual disposal of a business asset by a recipient of a gift?

Hold Over Relief Signup and view all the answers

Which of the following statements is true regarding the qualification of shares for Investor's Relief?

They must be issued after March 2016 for cash. Signup and view all the answers

Which term describes postponing payment of capital gains tax until a qualifying business asset is sold?

Roll Over Relief Signup and view all the answers

For the Hold Over Relief claim, what is the time limit to make the claim?

Four years from the end of the tax year of disposal. Signup and view all the answers

Which of the following assets does not qualify as a Qualifying Business Asset (QBA)?

Publicly traded company shares. Signup and view all the answers

What is the tax rate that applies to gains made on qualifying shares under Investor's Relief?

10% Signup and view all the answers

Study Notes

ADR Costs

Courts consider the severity of dispute resolution when ordering costs.
Courts will usually avoid a disproportionate ruling, particularly for simple disputes.
Non-lawyers are only held accountable to their representative body.
All employees of SRA firms must understand and obey the SRA code of conduct.

Contract Damages

Contract breach damages are usually awarded based on the losses suffered.
Reliance damages are awarded when the exact losses are hard to estimate (e.g., actor pulling out of a movie).
Reliance damages are calculated as if the contract had not been breached.
If dissatisfied with an arbitrator's ruling, one can take it to court if there's a legal error.

Company Names and Contracts

Sole traders must adhere to company act rules when naming their businesses.
The length of time since a contract's creation or a representation being made affects whether the contract's terms can be enforced.
When reviewing contracts, consider the time frame between the term's inception and agreement completion.
Pay corporation tax on capital gains and trading profits (CGT).

Statutory Demands and Legal Obligations

A statutory demand can prevent an administrator from seeking payment.
Disclosing concerns to the appropriate officer discharges legal obligations, as it was the matter of responsibility for the individual in question.

Personal Injury Standards

Personal injury cases require 50,000 in the high court - compared to normal 100,000.
The standards for evaluating complexity continue to apply similarly to high court and standard court cases.

Partnership Liabilities

In partnerships, members are jointly and severally liable.
Ordinary resolution is required for dividends to be issued.

Tort Damages

The maximum duration for latent damage claims in tort is fifteen years.
Sole traders cannot secure floating charges.

Acknowledgement and Defence Filing

Acknowledging service within 14 days of the claim and filing a defence is within 28 days - 14 days.
The acknowledgement of service extension can be extended only if not acknowledged.
No indemnity required for non-reserved legal activities
If the firm continues to act on behalf of the clients, pressure groups applying in EHCR is not subject to effect them personally
The legal executive must be under supervisor
the client does not need an actual authority in any type of partnerships.

Additional Information

Notice periods for processions are six days
Public companies are required to have a secretary
Liability can be excluded all together in some situations
Fraudulent misrepresentation -recision or damage.
Reckless misrepresentation.
Innocent misrepresentation, if court deems fair.
A Statutory instruments
Practical benefit can be consideration.
Civil Procedure Rules

Dispute Resolution

Documents are deemed served two days after; when outside the jurisdiction, it's within six months.
Formal permission from court is needed for foreign areas.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore fundamental concepts in Alternative Dispute Resolution (ADR) and contract law. This quiz covers ADR costs, contract damages, and the importance of compliance in naming businesses. Test your knowledge on how these legal principles interact in practical scenarios.