Professional Conduct Flashcards
(15 cards)
You are instructed on behalf of the claimant in a breach of contract claim which is legally and factually very complicated. The claim is worth approximately £150,000 and, amongst other issues, the court will be invited to interpret a particular term of the contract in order to decide the case. This particular term is a common term within the context of contracts of this nature and the outcome of the case will have important implications for a large number of other businesses which use contracts with the same term.
What is the best advice to give the claimant in relation to where to start proceedings?
a) The claimant must issue this claim in the High Court.
b) The claimant could issue the claim in the High Court or County Court, but the High Court is more appropriate.
c) The claimant must issue this claim in the County Court.
d) The claimant could issue the claim in the High Court or County Court, but the County Court is more appropriate.
e) The claimant must issue this claim in the Magistrate’s Court.
b) The claimant could issue the claim in the High Court or County Court, but the High Court is more appropriate.
(A claim over £100,000 (non-PI) can be issued in the High Court or the County Court, and should only be issued in the High Court where its value, complexity or importance to the public mean that it ought to be dealt with by a High Court Judge. These facts disclose complexity and importance to the public. The value is confidently over £100,000, although the value alone might not justify issuing in the High Court if the claim was straightforward and of no public importance.)
In an appeal before the Court of Appeal, the appellant relies in argument on an earlier decision of the Judicial Committee of the Privy Council (JCPC) which indicates that the appeal should be allowed. The respondent relies in argument on an earlier decision of the Court of Appeal which indicates that the appeal should not be allowed. How should the Court of Appeal treat the two decisions to which it has been referred?
a) The court should consider itself bound by the earlier decision of the JCPC.
b) The court should consider itself bound by the earlier decision of the Court of Appeal.
c) The court should consider itself bound by both earlier decisions and must transfer the appeal to a higher court.
d) The court should treat both earlier decisions as having persuasive value only and must decide which of the two to follow.
e) The court should treat both earlier decisions as without precedent value and should make its decision without regard to either.
b) The court should consider itself bound by the earlier decision of the Court of Appeal.
(Privy Council decisions are not binding on the courts of England and Wales (so answers A and C are wrong). The Court of Appeal binds itself (so D and E are wrong). B is correct.)
A claim for damages for professional negligence is settled on terms that the defendant surveyor must pay to the claimant damages of £60,000 together with the claimant’s legal costs, to be assessed on the standard basis. In 2020 the claimant had entered into a written conditional fee agreement with her solicitor which provided for a success fee of 90%. The solicitor has calculated his professional charges at £20,000 before addition of the success fee and VAT. What sum may the solicitor charge the client for his professional fees, net of VAT?
a) £15,000
b) £18,000
c) £30,000
d) £35,000
e) £38,000
e) £38,000
(The success fee is 90%. 90% of £20,000 is £18,000. This is on top of the ‘normal’ fee of £20,000. So the total charge is £38,000).
To fund a breach of contract claim a claimant enters into a damages-based agreement with a firm of solicitors set at 20%.The claimant’s solicitors pay disbursements of £5,000. The action is settled. A settlement order is drawn up under which the defendant agrees to pay the claimant damages in the sum of £150,000 and agrees to pay the claimant’s solicitors’ costs of £10,000 plus disbursements of £5,000. The defendant pays the amounts due to the claimant’s solicitors. The claimant’s solicitors calculate the amount they can deduct under the damages-based agreement. The solicitors will remit the balance to the claimant.
a) £130,000
b) £120,000
c) £115,000
d) £148,000
e) £117,000
a) £130,000
(The client will receive £165,000 less 20% of damages due to be paid to the solicitor under the DBA (£30,000) and, without instructions to the contrary, £5,000 paid for disbursements. The client will therefore receive £130,000)
A claimant instructs its solicitor to put forward a breach of contract claim despite the solicitor’s advice that the claim is incoherent – it has no legal basis. Which of the following is the best advice as to whether such a claim should be put forward?
a) The solicitor should not help in putting this claim forward. The claimant can pursue the claim but risks a costs order against it.
b) The solicitor should help the claimant in putting the claim forward. The claimant risks a costs order against it.
c) The claimant cannot pursue the claim.
d) The solicitor should not help in putting this claim forward and should prevent the claimant from pursuing the claim.
e) The solicitor should help the claimant in putting the claim forward. The claimant and solicitor risk costs orders against them.
a) The solicitor should not help in putting this claim forward. The claimant can pursue the claim but risks a costs order against it.
(Rule 2.4 requires that you (as a solicitor) only put forward statements, representations or submissions to the court which are properly arguable. B and E are therefore wrong. Whether the claimant pursues the claim is up to the claimant, so C and D are wrong. A is correct.)
A solicitor supplements his income with buy-to-let flats. The solicitor decides to sell one of the
flats and use the capital for another investment. One of the solicitor’s clients offers the full
asking price for the flat and the solicitor accepts his client’s offer.
In the full knowledge that the solicitor is the seller, the client instructs the same solicitor in
writing to act as his solicitor in the transaction. The solicitor accepts the instruction and
prepares all the documents. The transfer is completed without complications.
Were the solicitor’s actions in accordance with the SRA Standards and Regulations?
A. Yes, because a solicitor can act where there is an own interest conflict if he has received
written consent from the client
B. Yes, because a solicitor can act where there is an own interest conflict if he is satisfied it is
in his client’s best interests
C.Yes, because a solicitor can act where there is an own interest conflict if the solicitor and
the client have a substantially common interest.
D.No, because a solicitor cannot act if there is an own interest conflict unless the solicitor and
the client are competing for the same objective
E. No, because a solicitor cannot act if there is an own interest conflict or a significant risk of
an own interest conflict.
E. No, because a solicitor cannot act if there is an own interest conflict or a significant risk of
an own interest conflict.
A firm of solicitors is acting on behalf of a client who is selling their property and purchasing a new property. A
deposit of £35,000 has been received from the buyer’s solicitor in respect of the sale and is held as
stakeholder. The firm of solicitors has not sent a bill of costs to the client yet.
Which one of the following best explains whether the £35,000 is client money?
A.Yes, it is client money.
B.No, it is not client money because it has been received from a third party and not from the client.
C.No, it is not client money because it is held as stakeholder and has not been released to the client.
D.No, it is not client money because a bill of costs has not yet been sent to the client.
E.No, it is not client money because it has been received by the firm of solicitors and not by the client
A.Yes, it is client money.
You work in a firm of solicitors which receives a cheque for £4,500. The cheque is made payable to the firm and
is drawn on the client account of Elford & Partners (another firm of solicitors). The cheque arrives with a
covering letter from Elford & Partners, stating that it represents payment of damages owed by one of their
clients to one of your clients, Sonia Jones, who you represented in her claim for damages. The partner in your
firm who has been dealing with the matter is away from the office for one week on holiday and cannot be
contacted. Sonia Jones is out of the country on a business trip.
Which one of the following sets out the best course of action your firm should take?
A. Send the cheque immediately to Sonia Jones by first class post.
B. Bank the cheque immediately in the firm’s client account and notify Sonia Jones that the money has been
received.
C. Hold the cheque and try to contact Sonia Jones to find out what she would like your firm to do with the
cheque.
D. Bank the cheque immediately in the firm’s business account until the partner dealing with the matter returns
from holiday.
E. Hold the cheque until the partner dealing with the matter returns from holiday.
B. Bank the cheque immediately in the firm’s client account and notify Sonia Jones that the money has been
received.
A firm of solicitors is acting on behalf of a client who is selling his property and purchasing a new property. A
deposit of £25,000 has been received in respect of the sale and is held as stakeholder.
Which pair of double entries shows how the receipt of the deposit should be recorded?
A. Credit cash sheet client account
Debit stakeholder ledger
B. Credit cash sheet business account
Debit stakeholder ledger
C. Credit client ledger client account
Debit stakeholder ledger
D. Credit stakeholder ledger
Debit cash sheet client account
E. Credit cash sheet client account
Debit client ledger client account
D. Credit stakeholder ledger
Debit cash sheet client account
A solicitor is dealing with the administration of a deceased’s estate for a client. At the outset the
solicitor gave a written estimate of the likely total costs of £10,000 including disbursements. A few
weeks later the client instructs the solicitor to arrange for some shares in an overseas company to
be sold. The solicitor decides the best way to do this is to instruct an agent to sell the shares. The
agent’s fees will be an additional £1,000.
Which of the following best explains what the solicitor should do next?
A. The solicitor does not need to do anything because the client was informed that it was only an
estimate at the outset.
B. The solicitor does not need to do anything because the agent’s fees will be incurred outside England and Wales.
C. The solicitor does not need to do anything because the agent will invoice the client directly.
D. The solicitor should write to the client to inform him about the agent’s fees and ask for his
instructions because a solicitor must get prior approval for every item of expenditure.
E. The solicitor should write to the client to inform him about the agent’s fees and ask for his
instructions because the original estimate is no longer accurate.
E. The solicitor should write to the client to inform him about the agent’s fees and ask for his
instructions because the original estimate is no longer accurate.
(This is a material difference to the original estimate. You do not have to get approval for **every single item of expenditure ** but there is a change to the facts here).
A client telephones a solicitor to instruct her to draft wills for himself and his brother. They both
wish to leave their estates to each other.
Which of the following best explains what the solicitor should do?
A. The solicitor must draft wills for the client and the brother if the brother has given written
authorisation in advance of the client’s authority to give instructions on his behalf and
provided the solicitor has as no reason to doubt the instructions reflect the brother’s wishes.
B. The solicitor may draft wills for the client and the brother if the brother has given written
authorisation in advance of the client’s authority to give instructions on his behalf.
C. The solicitor cannot draft the wills for the client and the brother unless the brother provides
instructions to her directly.
D. The solicitor cannot draft the wills for the client and the brother because there is a conflict of
interests between them.
E. The solicitor can draft the wills for the client and the brother because they are related to each
other and there is a low risk that the instructions do not represent the brother’s wishes.
B. The solicitor may draft wills for the client and the brother if the brother has given written
authorisation in advance of the client’s authority to give instructions on his behalf.
(CCS - You only act for clients on instructions from the client, or from someone properly
authorised to provide instructions on their behalf. If you have reason to suspect that the
instructions do not represent your client’s wishes, you do not act unless you have satisfied
yourself that they do. Must be written instructions - only way to give instructions on someones behalf).
A disabled employee at a firm of solicitors has requested that the firm buy some computer
software for him to use at work. This software enables a person with the employee’s disability to
use a computer more effectively. The partners in the firm want advice on their obligations under
the Equality Act 2010 (‘the Act’).
What must the partners in the firm do to meet their obligations under the Act?
A. Make substantial adjustments to ensure that the disabled employee is not placed at a
disadvantage compared to those who are not disabled.
B. Make reasonable adjustments to ensure that the disabled employee is not placed at a
substantial disadvantage compared to those who are not disabled.
C. Make adjustments to ensure that the disabled employee is not placed at a significant
disadvantage compared to those who are not disabled.
D. Make significant adjustments to ensure that the disabled employee is not placed at a
disadvantage compared to those who are not disabled.
E. Make adjustments to ensure that the disabled employee is not placed at an unreasonable
disadvantage compared to those who are not disabled.
B. Make reasonable adjustments to ensure that the disabled employee is not placed at a
substantial disadvantage compared to those who are not disabled.
A solicitor is advising a client who wants to leave a considerable sum of money to a charity in his
will.
The following day the solicitor sits next to a new acquaintance at a golf club dinner. The new
acquaintance tells the solicitor that he is concerned that the charity he works for is bound for
financial failure because the directors are being sued for misappropriation of the charity’s funds.
The new acquaintance then tells the solicitor the name of the charity he works for. Much to the
solicitor’s surprise it is, by coincidence, the charity the client is proposing to bequeath to.
Is the solicitor obliged to inform the client of the reported concerns about the prospects of
the charity?
A. No, because the information was obtained in the course of the solicitor’s personal life and
therefore does not impact on his professional obligations.
B. No, because the duty of confidentiality overrides the duty of disclosure.
C. No, because information obtained from clients must be kept confidential unless disclosure is
required or permitted by law or the client consents.
D. Yes, because the information is material to the client’s matter.
E. Yes, because the duty of disclosure overrides the duty of confidentiality.
D. Yes, because the information is material to the client’s matter.
(Does not owe a duty of confidentiality to the acquantince, duties apply in personal life as well)
Arjun Patel sends a cheque to the law firm acting for him on the drafting of his will. He sends the
cheque at the start of the transaction, and it is generally on account of costs to be incurred in
connection with the matter.
Which pair of double entries shows how the receipt of the cheque from Mr Patel should be
recorded in your firm’s accounts?
A. Credit client ledger client account: Arjun Patel
Debit cash sheet client account
B. Debit client ledger client account: Arjun Patel
Credit cash sheet client account
C. Debit client ledger business account: Arjun Patel
Credit cash sheet business account
D. Credit client ledger client account: Arjun Patel
Debit client ledger business account: Arjun Patel
E. Credit client ledger business account: Arjun Patel
Debit cash sheet business account
A. Credit client ledger client account: Arjun Patel
Debit cash sheet client account
