SQE1 Practice Questions MCQs

SQE1 makes use of single best answer MCQs (Multiple-Choice Questions) to test your functioning legal knowledge across various practice areas and assess your ability to apply legal principles in practical contexts. Success in these questions requires more than just memorising legal rules; it demands careful reading, logical reasoning, and strategic preparation. Here, we provide two practice questions with detailed explanations, offering you a step-by-step guide to tackling the MCQs.

First, before you scroll down for answers, spend no more than 1 minute and 42 seconds answering each of the following two questions.

SQE1 Practice Question 1
A supplier agrees to deliver 500 units of a product to a retailer for £5,000. After delivering 300 units, the supplier informs the retailer that due to an increase in material costs, they can only deliver the remaining 200 units if the retailer agrees to pay an additional £1,000. The retailer, concerned about meeting their sales commitments, agrees to the additional payment. Once the final delivery is made, the retailer refuses to pay the extra £1,000.

Can the supplier enforce the payment of the additional £1,000?
A. Yes, because the supplier completed the delivery as agreed.
B. Yes, because the retailer agreed to pay the additional £1,000 to avoid inconvenience.
C. No, because the original contract already required the supplier to deliver 500 units for £5,000.
D. No, because the retailer’s agreement to pay the additional £1,000 was made under economic duress.
E. No, because the supplier provided no new consideration for the additional £1,000.


SQE1 Practice Question 2
A solicitor is handling the purchase of a high-value property for a new client. During the transaction, the solicitor notices several red flags, including the client’s reluctance to provide identification documents and a request to transfer a large sum of money through multiple accounts. The solicitor suspects that the funds may be linked to money laundering activities.

What action should the solicitor take?
A. Complete the transaction as the client’s instructions should be followed without question.
B. Inform the client of the suspicion of money laundering and ask for an explanation before proceeding.
C. Report the suspicion to the firm’s Money Laundering Reporting Officer and await further instructions before proceeding.
D. Refuse to proceed with the transaction and report the client to the police immediately.
E. Continue with the transaction but keep detailed records of all suspicious activities for future reference.


Tips for Answering MCQs
To approach MCQs effectively, it is essential to understand their structure. Each question begins with a scenario that sets out a problem or legal issue, followed by a specific question and five possible answers. While some options may seem plausible, only one is the best and most legally accurate response. The challenge lies in distinguishing between options that might be superficially correct and the one that directly addresses the question posed.

Reading the question carefully is the first and most crucial step. Candidates often make mistakes by skimming the text and missing key details. Each scenario contains critical information, such as timelines, jurisdictions, or the specific actions of the parties involved, which must be understood to identify the correct answer. A thorough reading ensures that you comprehend the facts and the legal issue being tested, minimising the risk of overlooking important matters.

Breaking down the scenario into manageable parts is equally important. Start by identifying the key facts and the legal issue at hand. Determine which area of law is relevant and consider the specific principles or rules that apply. For example, in a question about negligence, you would need to analyse whether all elements, namely duty of care, breach, causation, and damages, are present. This methodical approach allows you to focus on the core issue without being distracted by extraneous information.

Once you understand the question and its context, consider all five answer options carefully. Even if an answer seems correct at first glance, it is important to evaluate all options before making a choice. This ensures you do not miss a better, more precise answer. Eliminate options that are clearly irrelevant, inconsistent with the facts, or incorrect based on your knowledge of the law. Narrowing down the choices makes it easier to identify the single best answer.

Applying legal principles logically is a must for answering MCQs. These questions test your ability to reason through legal problems, not just your ability to recall rules. Think about how the law applies to the facts presented and ensure your answer reflects both the specific legal issue and the scenario’s details. For example, if the question concerns a breach of contract, consider whether all elements of contract formation, breach, and remedies are addressed by the option you choose.

Time management is another critical aspect of success in MCQs. With 180 questions to answer in two sittings, you have approximately 1 minute and 42 seconds per question. While it is important to read and analyse each question carefully, you must avoid spending too much time on a single question. If you are unsure about an answer, eliminate as many incorrect options as possible, make an educated guess, and move on. Mark the question for review if the system allows, so you can revisit it later if time permits.

Consistent practice is essential to mastering the single best answer format. Mock exams and practice questions, such as our SQE1 Mock Exam, help you become familiar with the style and complexity of the questions. They also allow you to refine your exam techniques, such as identifying key facts quickly and managing your time effectively. Reviewing the reasoning behind correct and incorrect answers helps you understand common pitfalls and improve your problem-solving approach.

Finally, staying calm and focused during the exam is crucial. The sheer volume of questions and the pressure to perform can be overwhelming, but maintaining a clear and confident mindset will help you make better decisions. If you encounter a particularly difficult question, remind yourself that every question carries the same weight. Move on and return to it later if necessary. Trust your preparation and your ability to analyse the problem logically.


SQE1 Practice Question 1 Answer
The correct answer is E. No, because the supplier provided no new consideration for the additional £1,000.

Consideration is a fundamental requirement for a binding contract. It refers to something of value exchanged between the parties. For a variation of an existing contract to be enforceable, there must be new consideration provided.

The supplier and retailer had an original agreement for the delivery of 500 units for £5,000. When the supplier demanded an additional £1,000 due to increased material costs, the supplier did not offer any new consideration for this additional payment. The supplier was already contractually obligated to deliver the 500 units for the original price of £5,000.

The supplier was under a pre-existing duty to deliver the 500 units for £5,000. The additional demand for £1,000 does not involve any new consideration. Without new consideration, the modification to the contract is not enforceable. Therefore, the payment of the additional £1,000 is not enforceable.

There is no indication that delivering the remaining 200 units would provide a practical benefit to the retailer, who is merely ‘concerned’ about meeting their sales commitments. Nor is there any indication that the retailer would face legal consequences for failing to meet those commitments, which may be a gratuitous promise rather than a contractual obligation. Therefore, the principle of practical benefit established in Williams v Roffey Bros (1989) does not apply without further information.

A is not correct. Completing the delivery as per the original contract does not provide new consideration for the additional payment. The supplier was already legally bound to deliver the 500 units for £5,000.

B is not correct. The retailer’s agreement, made under the fear of inconvenience, does not constitute valid consideration, which must be something of value in the eyes of the law. Delivering the remaining 200 units does not provide a practical benefit, as there is no indication that the retailer would fail to meet their sales commitments, which could be a gratuitous promise rather than an obligation. Therefore, the retailer’s agreement to avoid inconvenience alone is not a sufficient legal basis to enforce the additional payment.

C is not correct. While this is true, it does not directly address the issue of consideration, which is the key legal principle in determining the enforceability of the additional payment.

D is not correct. Economic duress can make an agreement voidable, but the primary issue here is the lack of new consideration. The supplier's demand was not backed by any new consideration, making the additional payment unenforceable.


SQE1 Practice Question 2 Answer
The correct answer is C. Report the suspicion to the firm’s Money Laundering Reporting Officer and await further instructions before proceeding.

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process launders it to make it look clean.

Section 330 of the Proceeds of Crime Act 2002 (POCA) requires individuals in the regulated sector, including solicitors, to make a disclosure when they know or suspect, or have reasonable grounds for knowing or suspecting, that another person is engaged in money laundering.

A Money Laundering Reporting Officer (MLRO) is an officer who ensures his company stays compliant with the rules on money laundering. MLROs are nominated officers who act as the focal point within the relevant firm for the oversight of all activity relating to anti-money laundering.

Section 331 mandates that the nominated officer must make a Suspicious Activity Report (SAR) to the National Crime Agency (NCA) if he believes the information or other matters disclosed to him give reasonable grounds for suspecting money laundering.

Section 335 requires that the solicitor must then wait for authorisation from the nominated officer or the NCA before proceeding with any transaction that is suspected of money laundering. Section 336 requires that the nominated officer must wait until obtaining appropriate consent from the relevant authorities before giving authorisation to the solicitor.

A is incorrect because solicitors have a legal obligation to prevent and report money laundering. Ignoring red flags and proceeding without proper checks could make the solicitor complicit in money laundering activities.

B is incorrect because informing the client of the suspicion constitute tipping off, which is an offence under Section 333A POCA. Tipping off could alert the client and hinder any investigation by authorities.

D is incorrect because the proper protocol is to report suspicions internally to the MLRO first. The MLRO will then decide whether to make an SAR to the NCA. Reporting directly to the police is not the correct first step.

E is incorrect because continuing with the transaction without addressing the suspicion of money laundering violates the regulations. Merely keeping records is not sufficient; the suspicion must be reported to the MLRO and appropriate actions must be taken based on their instructions.