UK SQE1 FUNCTIONING LEGAL KNOWLEDGE (FLK)
MASTER SUMMARY | 2026/2027 EDITION | CORE BUSINESS,
DISPUTE & TORT LAW CASE BRIEFS - GRADED A+
239 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
UK SQE1 FUNCTIONING LEGAL KNOWLEDGE (FLK) MASTER SUMMARY | 2026/2027 EDITION | CORE
BUSINESS, DISPUTE & TORT LAW CASE BRIEFS - GRADED A+. It contains 239 carefully selected questions
that reflect the most current exam content and testing strategies. Each question is accompanied by a correct
answer and a detailed rationale that explains the underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 239 Questions
Foundations - Application - UK SQE1 Functioning Legal Knowledge FLK Master Summary 2026/2027
Edition CORE Business Dispute & TORT LAW CASE Briefs A UK SQE1 Functioning Legal Knowledge FLK
CORE Business Dispute & TORT LAW Graduate LLM / JD Equivalent
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
UK SQE1 Functioning Legal 1-40 Regarding, Accurate, Negligence, Contract, Breach
Knowledge FLK Master
Summary 2026/2027 Edition
CORE Business Dispute &
TORT LAW CASE Briefs A
UK SQE1 Functioning Legal
Knowledge FLK CORE
Business Dispute & TORT
LAW Graduate LLM / JD
Equivalent
Claim 41-80 Contract, Goods, Defendant, Claimant, Company
Negligence 81-120 Claim, Contract, Defendant, Breach, Describes
Breach 121-160 Claim, Describes, Negligence, Contract, Context
Describes 161-200 Claim, Breach, Contract, Negligence, Company S
Defendant 201-239 Contract, Claimant, Describes, Negligence, Breach
TOTAL 239 All questions include answers and detailed rationales
,Section A - UK SQE1 Functioning Legal Knowledge FLK
Master Summary 2026/2027 Edition CORE Business Dispute
& TORT LAW CASE Briefs A UK SQE1 Functioning Legal
Knowledge FLK CORE Business Dispute & TORT LAW
Graduate LLM / JD Equivalent
Q1.
A company's articles state that directors may not borrow more than £500,000 without
shareholder approval. The managing director, without approval, borrows £750,000 from a
bank that has seen the articles. The company later defaults. Which best describes the
bank's position?
A. The bank cannot enforce the loan B. The bank can enforce the loan because
because the managing director lacked the managing director had apparent
actual authority. authority and the bank was not fixed with
notice of the articles' restriction.
C. The bank can enforce the loan because D. The bank cannot enforce the loan
the articles are deemed to be notice to the because the articles' restriction is a
bank, but the company may ratify the mandatory provision that the company
borrowing. cannot waive.
Correct: C - The bank can enforce the loan because the articles are deemed to be notice to
the bank, but the company may ratify the borrowing.
Rationale:Under the doctrine of constructive notice, third parties dealing with a company are
deemed to have notice of its public documents, including articles of association. However,
under the Companies Act 2006, the effect of constructive notice has been substantially
abolished for most transactions, but for loans to directors, the bank is still deemed to know of
restrictions in the articles. Thus, the bank is fixed with notice and cannot enforce the loan as
against the company unless the company ratifies it. Option A is incorrect because actual
authority is not the issue; apparent authority is negated by notice. Option B is incorrect
because the bank is deemed to have notice. Option D is incorrect because the restriction is
not mandatory in the sense of being incapable of waiver; ratification is possible.
Q2.
In a negligence action, the claimant proves that the defendant breached a duty of care and
that the claimant suffered damage. However, the defendant demonstrates that the damage
would have occurred even if the breach had not happened, due to an independent
pre-existing condition. Under the 'but for' test, what is the most accurate legal outcome?
A. The claimant succeeds because the B. The claimant fails because causation
breach was a material contribution to the cannot be established on the balance of
damage. probabilities.
Page 3
, Section A - UK SQE1 Functioning Legal Knowledge FLK Master Summary 2026/2027 Edition CORE Business Dispute & TORT LAW CASE
Briefs A UK SQE1 Functioning Legal Knowledge FLK CORE Business Dispute & TORT LAW Graduate LLM / JD Equivalent
C. The claimant succeeds because the D. The claimant fails because the
defendant's breach increased the risk of pre-existing condition is a novus actus
damage. interveniens.
Correct: B - The claimant fails because causation cannot be established on the balance of
probabilities.
Rationale:The 'but for' test requires that the damage would not have occurred but for the
defendant's breach. If the damage would have occurred anyway due to an independent
cause, causation is not established, and the claim fails. Option A is incorrect because
material contribution applies when the breach is a cause, not when it is not. Option C is
incorrect because increased risk is not sufficient for factual causation in standard cases.
Option D is incorrect because a pre-existing condition is not a novus actus interveniens; it is a
factor in causation analysis.
Q3.
Under the Consumer Rights Act 2015, a trader sells goods to a consumer. The goods are
not of satisfactory quality. The consumer rejects the goods within 30 days and seeks a
refund. Which of the following best describes the consumer's right to a refund?
A. The consumer is entitled to a full refund, B. The consumer is entitled to a full refund
but the trader may deduct an amount for without any deduction, and the trader must
use. collect the goods at the trader's expense.
C. The consumer is entitled to a full refund, D. The consumer is entitled to a repair or
but only if the consumer returns the goods replacement, not a refund, during the first 30
at the consumer's own cost. days.
Correct: B - The consumer is entitled to a full refund without any deduction, and the trader
must collect the goods at the trader's expense.
Rationale:Under the Consumer Rights Act 2015, section 22, if goods do not conform to the
contract, the consumer has a short-term right to reject within 30 days of delivery. The
consumer is entitled to a full refund without any deduction for use, and the trader must bear
the reasonable cost of collecting the goods if they cannot be returned easily. Option A is
incorrect because no deduction for use is permitted during the short-term right. Option C is
incorrect because the trader bears the collection cost if necessary. Option D is incorrect
because the consumer has the right to reject, not just repair or replacement.
Q4.
In a dispute over a commercial contract, the parties have agreed to arbitration. One party
seeks to challenge the arbitrator's award on the ground of serious irregularity under
section 68 of the Arbitration Act 1996. Which of the following is a valid ground for
challenge?
Page 4
MASTER SUMMARY | 2026/2027 EDITION | CORE BUSINESS,
DISPUTE & TORT LAW CASE BRIEFS - GRADED A+
239 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
UK SQE1 FUNCTIONING LEGAL KNOWLEDGE (FLK) MASTER SUMMARY | 2026/2027 EDITION | CORE
BUSINESS, DISPUTE & TORT LAW CASE BRIEFS - GRADED A+. It contains 239 carefully selected questions
that reflect the most current exam content and testing strategies. Each question is accompanied by a correct
answer and a detailed rationale that explains the underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 239 Questions
Foundations - Application - UK SQE1 Functioning Legal Knowledge FLK Master Summary 2026/2027
Edition CORE Business Dispute & TORT LAW CASE Briefs A UK SQE1 Functioning Legal Knowledge FLK
CORE Business Dispute & TORT LAW Graduate LLM / JD Equivalent
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
UK SQE1 Functioning Legal 1-40 Regarding, Accurate, Negligence, Contract, Breach
Knowledge FLK Master
Summary 2026/2027 Edition
CORE Business Dispute &
TORT LAW CASE Briefs A
UK SQE1 Functioning Legal
Knowledge FLK CORE
Business Dispute & TORT
LAW Graduate LLM / JD
Equivalent
Claim 41-80 Contract, Goods, Defendant, Claimant, Company
Negligence 81-120 Claim, Contract, Defendant, Breach, Describes
Breach 121-160 Claim, Describes, Negligence, Contract, Context
Describes 161-200 Claim, Breach, Contract, Negligence, Company S
Defendant 201-239 Contract, Claimant, Describes, Negligence, Breach
TOTAL 239 All questions include answers and detailed rationales
,Section A - UK SQE1 Functioning Legal Knowledge FLK
Master Summary 2026/2027 Edition CORE Business Dispute
& TORT LAW CASE Briefs A UK SQE1 Functioning Legal
Knowledge FLK CORE Business Dispute & TORT LAW
Graduate LLM / JD Equivalent
Q1.
A company's articles state that directors may not borrow more than £500,000 without
shareholder approval. The managing director, without approval, borrows £750,000 from a
bank that has seen the articles. The company later defaults. Which best describes the
bank's position?
A. The bank cannot enforce the loan B. The bank can enforce the loan because
because the managing director lacked the managing director had apparent
actual authority. authority and the bank was not fixed with
notice of the articles' restriction.
C. The bank can enforce the loan because D. The bank cannot enforce the loan
the articles are deemed to be notice to the because the articles' restriction is a
bank, but the company may ratify the mandatory provision that the company
borrowing. cannot waive.
Correct: C - The bank can enforce the loan because the articles are deemed to be notice to
the bank, but the company may ratify the borrowing.
Rationale:Under the doctrine of constructive notice, third parties dealing with a company are
deemed to have notice of its public documents, including articles of association. However,
under the Companies Act 2006, the effect of constructive notice has been substantially
abolished for most transactions, but for loans to directors, the bank is still deemed to know of
restrictions in the articles. Thus, the bank is fixed with notice and cannot enforce the loan as
against the company unless the company ratifies it. Option A is incorrect because actual
authority is not the issue; apparent authority is negated by notice. Option B is incorrect
because the bank is deemed to have notice. Option D is incorrect because the restriction is
not mandatory in the sense of being incapable of waiver; ratification is possible.
Q2.
In a negligence action, the claimant proves that the defendant breached a duty of care and
that the claimant suffered damage. However, the defendant demonstrates that the damage
would have occurred even if the breach had not happened, due to an independent
pre-existing condition. Under the 'but for' test, what is the most accurate legal outcome?
A. The claimant succeeds because the B. The claimant fails because causation
breach was a material contribution to the cannot be established on the balance of
damage. probabilities.
Page 3
, Section A - UK SQE1 Functioning Legal Knowledge FLK Master Summary 2026/2027 Edition CORE Business Dispute & TORT LAW CASE
Briefs A UK SQE1 Functioning Legal Knowledge FLK CORE Business Dispute & TORT LAW Graduate LLM / JD Equivalent
C. The claimant succeeds because the D. The claimant fails because the
defendant's breach increased the risk of pre-existing condition is a novus actus
damage. interveniens.
Correct: B - The claimant fails because causation cannot be established on the balance of
probabilities.
Rationale:The 'but for' test requires that the damage would not have occurred but for the
defendant's breach. If the damage would have occurred anyway due to an independent
cause, causation is not established, and the claim fails. Option A is incorrect because
material contribution applies when the breach is a cause, not when it is not. Option C is
incorrect because increased risk is not sufficient for factual causation in standard cases.
Option D is incorrect because a pre-existing condition is not a novus actus interveniens; it is a
factor in causation analysis.
Q3.
Under the Consumer Rights Act 2015, a trader sells goods to a consumer. The goods are
not of satisfactory quality. The consumer rejects the goods within 30 days and seeks a
refund. Which of the following best describes the consumer's right to a refund?
A. The consumer is entitled to a full refund, B. The consumer is entitled to a full refund
but the trader may deduct an amount for without any deduction, and the trader must
use. collect the goods at the trader's expense.
C. The consumer is entitled to a full refund, D. The consumer is entitled to a repair or
but only if the consumer returns the goods replacement, not a refund, during the first 30
at the consumer's own cost. days.
Correct: B - The consumer is entitled to a full refund without any deduction, and the trader
must collect the goods at the trader's expense.
Rationale:Under the Consumer Rights Act 2015, section 22, if goods do not conform to the
contract, the consumer has a short-term right to reject within 30 days of delivery. The
consumer is entitled to a full refund without any deduction for use, and the trader must bear
the reasonable cost of collecting the goods if they cannot be returned easily. Option A is
incorrect because no deduction for use is permitted during the short-term right. Option C is
incorrect because the trader bears the collection cost if necessary. Option D is incorrect
because the consumer has the right to reject, not just repair or replacement.
Q4.
In a dispute over a commercial contract, the parties have agreed to arbitration. One party
seeks to challenge the arbitrator's award on the ground of serious irregularity under
section 68 of the Arbitration Act 1996. Which of the following is a valid ground for
challenge?
Page 4
