Topic 16 Key Legal Concepts Flashcards by JOSHUA SAVIDENT

Q

What is a Legal Person (Legal Entity)?

A

Body that can enter into contracts, sue or be sued in a court of law

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

A legal person is not just an individual but can be groups of people and limited companies

True or False

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is a disadvantage of a sole trader not being a separate legal entity?

A

They are personally liable for the business’s debts

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

A company is separate from its shareholders & employees.

True or False

A

True

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The certificate of incorporation provide evidence of what?

A

The company’s formation

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What information can be found at the central registry at companies house?

A

Shareholding & Shareholders
Names & addresses of directors & company secretary

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The nature of the company and rules about what it can & can’t do are set out where?

A

The company’s Memorandum & Articles of Association

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The liabilities for partners in a partnership are what?

A

Jointly and severally responsible for the liabilities of a partnership

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

How is a Limited Liability Partnership different from other partnerships?

A

Their liability is limited to the amount they have invested should the business collapse

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

A Limited Liability Partnership (LLP) is a legal entity this mean it can do what?

A

Borrow

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Most businesses agreements in the world of finance are what?

A

Legally Binding

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What are the ways contracts are made?

A

Orally
Writing
Deed

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Offer & Acceptance
Consideration
Capacity to Contract
Contract Terms
Intention to create a legal relationship
Legality of Object
Entered into Freely

Are all what?

A

Binding Contracts

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

The offeror makes an offer and there must be an unqualified acceptance by the other. This must be committed to the other party

A

Offer & Acceptance

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

Subject of contract must be matched by a consideration (payment etc)

A

Consideration

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

Each party to the contract must have legal capability or power to do so.
Minors or those with reduced mental capacity have limited powers

A

Capacity to contract

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

Must be complete certain and free from doubt

A

Contract Terms

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

As distinct from a merely informal arrangement

A

Intention to create a legal relationship

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

Contracts cannot be made for illegal or immoral purposes

A

Legality of Object

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Which Binding Contract is this?

If misrepresentation, duress or undue influence occur the contract is not valid

A

Entered into Freely

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Contracts involving land must be what?

A

Must be made in writing
Conveyance of land must be performed by deed

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

There is not usually what between parties to a contract?

A

Duty of Disclosure

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

How was Disclosure of Information different for insurance contacts?

A

Applicant had to supply all the facts relevant for a policy

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What has the Consumer Insurance (Disclosure & Representations) Act 2012 now done with insurance claims for customers applying for a claim?

A

To answer questions with reasonable care

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

When an applicant for insurance answers is the below. True or False If a question was misrepresentation was honest and reliable. The insurer has no right to refuse the claim?

True

In the case of insurance misrepresentation due to carelessness what remedy can the insurer apply?

Compensatory Remedy

When an applicant for insurance answers in the below. True or False If careless misrepresented other than a claim the insurer and policy holder do have the right to terminate the contract with reasonable notice?

True

If a claim was a deliberate or reckless misrepresentation. The insurer can reject the claim and is not required to refund the premiums? True or False

True

What are the remedies for breach of contract?

- Damages - Order for specific performance - Injunction

This is what remedy for breach of contract? Injured party seeks to obtain financial compensation for their loss

Damages

This is what remedy for breach of contract? Compels the other party to complete the contract

Order for specific performance

This is what remedy for breach of contract? Prevents someone from doing something

Injunction

Why were Critical Illness Claims claims upheld by the Financial Ombudsman rejected due to non disclosure overturned?

Tey required a claimant to remember all the times they required treatment

What is the Law of Agency?

An agent who acts on behalf of another (Principle)

In an Agent-Principal relationship an agents power is fixed? True or False

False Each agent has different range of power set for them

What could happen to a principal & an agent if an agent acts outside of their authority?

They could be liable on the contract

What does "Apparent Authority" mean?

Something said by the principal that gives the impression they have authorised the agent's actions

What is "Ratification"?

When an agent has exceeded their authority. The principal can agree to what the agent has done.

The law of England & Wales refers to property as all types of asset True or False

True

What are the 2 types of property?

1. Realty 2. Personalty

What is Realty?

If a court would return a property to a dispossessed owner and provide compensation for the loss

What is another feature of real property (Real Estate)?

It is immovable

What is Personalty?

All other property

What are the features of joint tenants?

- Each joint owner owns 100% of the property - On death of a owner the surviving owner takes ownership to the property - Transfer cannot be overridden by joint tenant or in a will

What are the features of Tenants in Common?

- Joint owners regarded as single owner but trustees to the land - Each owner has share in equity in the property - If owner does share of the property passes to whoever inherits

Each joint mortgage is written on a joint and several liability basis. This means what?

Each owner is responsible for the mortgage if another owner cannot make their payment

What is a Power of Attorney?

When attorney is given legal responsibility to act on behalf of another person

When might a Power of Attorney be used?

- Able person who is concerned about their finances after they are no longer capable - Person who has affairs in the UK who is moving abroad

Can a person who does not have legal capacity appoint a power of attorney?

No

What is an Enduring Power of Attorney?

Power of Attorney that continues when a person becomes mentally incapable

Where does a Enduring Power of Attorney (EPA) have to be registered?

Office of Public Guardian (OPG)

What is a donor in relation to a Power of Attorney?

Person who makes the power of attorney

What is a donee in relation to a Power of Attorney?

A person who is given power of attorney

What happened to Enduring Power of Attorneys (EPA)?

Were replaced by Lasting Power of Attorney (LPA)

What are the 2 types of Lasting Power of Attorney (LPA)

1. Health & Welfare 2. Property & Financial Affairs

What is Heath & Welfare Lasting Power of Attorney (LPA)

Donee can make decisions about care when the doner is no longer capable of making decisions

What is Property & Financial Affairs Lasting Power of Attorney (LPA)?

Give donee right to manage doner's bank account, collect benefits and sell property

What does the Mental Capacity Act 2005 do?

- Supports & protects individuals who lack the capacity to make their own decisions - Makes provision for substituted decision-making on behalf of an individual

What is a Will?

Written declaration of a person's wishes (assets etc) after they have died

What does it mean to die Intestate?

Dying without leaving a valid will

For a will to be valid it must be what?

1. In writing 2. Properly Executed

What is the minimum age for a valid Will under English law?

18

What would happen if the witness to the will was a beneficiary of the will?

They would not be able to inherit under the terms of the will

If the testor of a will marries, remarries or enters into a civil partnership what happens to the will? (unless in contemplation of change of status)

The will is revoked

Who is the testor of a will?

The person who makes a will

What is the name of a document that amends a will?

Codicil

The actions to be carried out in a will is the responsibility of the?

Executor

What does the grant of probate enable the executor to do?

Gives legal authority to carry out the instructions in the will

If there is no will what does the appropriate person need to apply for to distribute a person's estate?

Letters of administration

What is a "Deed of Variation"?

Legal agreement that enables the terms of a will to be altered after the death of a testor

Why might a "Deed of Variation" be used?

To reduce a persons liability to Inheritance Tax (IHT)

What does "Money's Worth" mean?

Goods received instead of a cash payment

According to the laws of Intestacy: If the deceased dies has a spouse and not children Who inherits the estate

Spouse inherits the entire estate

According to the laws of Intestacy: If there is a spouse and children What does the spouse inherit?

- Deceased personal possessions - First £322,000 - Half of residue above £322,000 absolutely

According to the laws of Intestacy: If there is a spouse and children What do the children inherit?

- Any amount in residue over £322,000 is divided between the children

According to the laws of Intestacy: If there a children but no spouse How is the estate distributed?

- Estate is distributed amongst the children

According to the laws of Intestacy: What happens if there is neither spouse nor children

Estate goes to the parents of the deceased or (if dead) the deceased's siblings

According to the laws of intestacy Who inherits an estate if no blood relative can be found?

The crown

If a person dies in testate the estate goes to any surviving spouse even if they are divorced from the spouse. True or False

True

The Executor of a will cannot benefit from the will. True or False

False They can

For an Enduring Power of Attorney (EPA) the only place it can be revoked is the Court of Protection. True or False

True

How are Limited Liability Partnerships (LLP) taxed?

They are taxed as self employed and are subject to income tax

Where is the only place an enduring power of attorney be revoked and registered?

Court of Protection