Newsletter 72

Monday 27 January 2025

Your weekly SQE Prep Quiz has arrived

Dear Subscriber,

I hope you had a great weekend! Please see below for the question, the answer to the previous question and associated resources. This is the web version of this newsletter.

Weekly SQE1 FLK1 livestreams! Get your SQE questions answered live! Click here and tap the notification button in anticipation of our next session on 29 January.

SQE1 Mocks: Test your knowledge in exam conditions for the price of a pizza! I am collaborating with Law Drills to offer mini-mocks. Go to https://www.lawdrills.com/ , click Start for Free, select the relevant SQE1 FLK and go to exam packs for the mini-mocks. Also, use discount code “IOANNIS” to get 15% off any of the Pro Plans of AI tutor Law Drills.

Question: Daniel, the owner of a luxury car rental business, entered into a contract with Speedy Repairs Ltd. to service and maintain his fleet of high-end vehicles. Under the contract, Speedy Repairs Ltd. was required to complete all maintenance work within five business days. However, due to staff shortages, Speedy Repairs Ltd. took three weeks to complete the work, causing Daniel to lose several lucrative rental contracts with corporate clients. Daniel estimates his lost profit at £50,000 and claims this amount from Speedy Repairs Ltd. as damages for breach of contract. Speedy Repairs Ltd. argues that they were unaware of the specific contracts Daniel had with his clients and that they should only be liable for direct losses, such as the cost of hiring alternative repair services. Daniel insists that he communicated the urgency of the repairs during initial contract negotiations.

Which of the following principles will the court consider when assessing Daniel’s claim for damages under English contract law?

  1. Remoteness of damage – The court will assess whether Daniel’s losses were a foreseeable consequence of the breach and within the reasonable contemplation of both parties at the time of contracting.
  2. Mitigation of loss – The court will only award damages if Daniel took reasonable steps to minimize his losses by seeking alternative repair services.
  3. Liquidated damages – The court will award Daniel the full £50,000 claimed, as financial loss was clearly anticipated and quantifiable in the contract.
  4. Specific performance – The court will order Speedy Repairs Ltd. to complete future repairs within the agreed timeline to avoid further losses.
  5. Causation – The court will consider whether Daniel’s losses were directly caused by Speedy Repairs Ltd.’s delay, without any intervening factors.

Resource: Learn more about remedies by watching this video.

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Answer and feedback to last week’s question: James, a solicitor at a mid-sized law firm, is representing a long-standing client, Olivia, in a property dispute. Olivia confides in James that she plans to dispose of certain key financial documents before they can be requested by the opposing party. She believes these documents might weaken her case. James is aware that the opposing party is likely to seek disclosure of these documents during proceedings. Olivia insists that the firm should proceed with the case as if the documents never existed. James is now in a dilemma regarding his professional obligations and seeks guidance on how to handle the situation. Under the Solicitors Regulation Authority (SRA) Code of Conduct, what should James do in response to Olivia’s intention to destroy evidence?

  1. Advise Olivia that destroying the documents would be unlawful and refuse to continue representing her if she insists on doing so.
  2. Proceed with the case while remaining silent about Olivia’s actions, as he owes a duty of confidentiality to his client.
  3. Inform the court immediately about Olivia’s intention to destroy evidence, as solicitors have an overriding duty to the court.
  4. Ignore the situation, as it is Olivia’s personal decision and not his responsibility as her legal representative.
  5. Advise Olivia that if she wishes to destroy the documents, she should do so without involving him to protect solicitor-client privilege.

Correct Answer: 1. Advise Olivia that destroying the documents would be unlawful and refuse to continue representing her if she insists on doing so. Feedback: Under the SRA Code of Conduct, solicitors have a duty to uphold the rule of law and the proper administration of justice. This includes an obligation to act with integrity (Principle 5) and not mislead the court or others. If a client intends to destroy evidence that may be relevant to proceedings, a solicitor must advise them that doing so would be unlawful and could constitute contempt of court or obstruction of justice. If the client persists in their intention to act dishonestly, the solicitor must cease acting in accordance with their ethical obligations.

Option 2 is incorrect because remaining silent would breach the solicitor’s duty to act with integrity and may constitute professional misconduct. Option 3 is incorrect because while solicitors owe a duty to the court, they cannot disclose confidential client information without the client’s consent, except in limited circumstances such as preventing a crime. James should first advise Olivia against destroying the documents rather than immediately informing the court. Option 4 is incorrect because ignoring the issue would violate the solicitor’s ethical obligations, as they must not knowingly allow their client to engage in dishonest or unlawful conduct. Option 5 is incorrect because advising Olivia to destroy the documents without involving him would be unethical and could implicate James in professional misconduct for facilitating dishonesty. Thus, the correct course of action for James is to advise Olivia against destroying the documents and, if she insists, to withdraw from representing her to maintain his professional integrity.

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All the best

Dr Ioannis Glinavos

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