Monday 26 May 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.
Question: Marcus owns a high-end catering business and enters into a contract with ChillTech Ltd. for the delivery of a specialist refrigeration unit to be installed before the launch of his new luxury venue. ChillTech Ltd. is aware that Marcus plans to open the venue on a specific date and that the refrigeration unit is essential for storing perishable ingredients for the launch event.
Due to a delay in delivery, the refrigeration unit arrives five days late, resulting in spoiled ingredients and Marcus having to cancel the launch event, losing £25,000 in profits and suffering reputational damage. Marcus sues ChillTech Ltd. for breach of contract and seeks to recover all his losses. Which of the following best reflects the legal principles that will apply to Marcus’s claim?
A. Marcus can recover all losses resulting from the breach, including reputational harm, regardless of what ChillTech Ltd. knew at the time of contracting.
B. Marcus can recover the full amount of lost profits and reputational damage, as all consequences of a breach are presumed recoverable.
C. Marcus may recover only losses that were within the reasonable contemplation of the parties at the time the contract was made, such as foreseeable lost profits.
D. Marcus can recover only the cost of the spoiled ingredients, as this is the only loss directly caused by the delay.
E. Marcus’s losses are too remote, as he should have made alternative arrangements and therefore bears the entire responsibility for the event’s cancellation.
Community: Join me live every Tuesday at 12.30pm London time between now and the SQE1 July sitting on YouTube to practice MCQs, chat about SQE prep and hang out with other candidates. Tomorrow’s link is here.
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Candidates keep asking me for notes, infographics and flowcharts: They are amazing study aids. I am launching a new series of 5′ video explainers of key #SQE #FLK topics that come with a pdf infographic. Videos initially visible to YouTube channel members, and free to the public in a few weeks. PDFs are available to download for channel members. Join for instant access.
Answer and feedback to last week’s question: Charlotte is a solicitor acting for a client purchasing a freehold residential property for £550,000 in England. The transaction is proceeding smoothly, and contracts are about to be exchanged. However, Charlotte realises that no Stamp Duty Land Tax (SDLT) advice has yet been given to the client, and the client is unaware of their obligation to pay SDLT following completion. The client is also unaware that they must submit an SDLT return to HMRC within a strict time limit. Charlotte now wants to ensure her client is properly advised before exchange and completion. Under current legal requirements, what must Charlotte advise her client in relation to Stamp Duty Land Tax (SDLT)?
A. That SDLT is only payable if the buyer is purchasing a second property or buying with the intent to rent the property out.
B. That SDLT must be paid by the seller on all residential transactions above £250,000.
C. That the buyer must file an SDLT return and pay the tax within 14 days of completion, or penalties and interest may apply.
D. That SDLT does not apply to freehold property purchases and is only payable on leasehold transactions.
E. That SDLT is automatically deducted by the Land Registry at the point of registration and requires no action from the buyer.
Correct Answer: C. That the buyer must file an SDLT return and pay the tax within 14 days of completion, or penalties and interest may apply. Explanation: Stamp Duty Land Tax (SDLT) is a tax payable on the purchase of land and property in England (subject to certain thresholds and exemptions). For residential property purchases:
- SDLT is payable by the buyer, not the seller.
- An SDLT return must be submitted to HMRC within 14 calendar days of the effective date of the transaction (usually the date of completion).
- Payment must also be made within 14 days, or penalties and interest may apply.
- Solicitors commonly handle this on behalf of clients as part of post-completion work.
Why the Other Options Are Incorrect:
- Option A is incorrect: SDLT is payable on residential property purchases above the relevant threshold regardless of whether it’s a first or second property.
- Option B is incorrect: SDLT is payable by the buyer, not the seller.
- Option D is incorrect: SDLT applies to both freehold and leasehold purchases, not just leasehold.
- Option E is incorrect: The Land Registry does not collect SDLT. Payment is made to HMRC, and evidence of SDLT compliance must be submitted before registration of the title.
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All the best
Dr Ioannis Glinavos
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