Legal Vocabulary Test

A cheque is a type of ..................... instrument.

1. Negotiable
2. Legal
3. Payer
4. Tender

The .................of a property is the person who rents it from the Landlord.

1. Occupier
2. Purchaser
3. Tenant
4. Party

The written agreement to live in a house, but not to buy it, is called a .......................

1. Contract
2. Lease
3. Conveyance
4. Stay

I keep my money in a ........................... account at the bank which means I can have access to it whenever I want it.

1. Usual
2. Special
3. Deposit
4. Current

A document known as a .............................is usually used when you borrow money from a bank to buy a house.

1. Security
2. Proof
3. Mortgage
4. Loan

The fomal legal name for an act which causes someone else to suffer some form of loss or harm is called a .................. .

1. Tort
2. Damage
3. Hurt
4. Injury

............................. is the word used to describe laws passed by a Country’s Parliament.

1. Bills
2. Legislation
3. Schedules
4. By-Laws

A .......................is a person who starts a case against someone else in a civil court.

1. Sponsor
2. Customer
3. Client
4. Litigant

A Public Limited Company is one which can sell its ..................... to the public. 

1. Debentures
2. Credit
3. Loans
4. Shares

I was protected ..................my creditors because of the Bankruptcy Judgement.

1. with
2. through
3. in
4. from

A ................... is the person who is charged with a crime in a court case.

1. Respondent
2. Bailiff
3. Defendant
4. Pleader

I searched .......... the meaning of the clause but could not understand it.

1. for
2. at
3. with
4. in

I took over the running of the case which had been started .................. my client himself.

1. against
2. for
3. by
4. at

I was very involved .......................... the day to day running of the company.

1. to
2. at
3. for
4. in

This letter is clearly marked ........................ my attention.

1. on
2. for
3. with
4. by

This document must be sent ........................ the Judge.

1. to
2. at
3. on
4. for

My client wishes to bring legal proceedings............... your client for the loss he has suffered.

1. at
2. for
3. against
4. towards

I was helped throughout the case ...................... my lawyer who specialised in that area of law.

1. at
2. by
3. in
4. for

To win this case we will have to get .................... the evidence that the other side brings against us.

1. in
2. over
3. from
4. for

Creditors

1. Customers
2. People the Company owes money to
3. People who owe money to the Company
4. People who do business with the Company

Minority Shareholders

1. People who own many shares
2. People who will buy more shares
3. People who own just a few shares
4. People who want to sell their shares

Bylaws

1. International rules
2. European Union directives
3. State economic rules
4. Internal company rules

Amendments

1. Ideas
2. Statements of laws
3. Differences
4. Changes

Substantially

1. Completely
2. Almost
3. Some
4. Mainly

Acquisition

1. Obtaining
2. Leasing
3. Selling
4. Keeping

Liquidation

1. Re-capitalising
2. Selling for cash
3. Turning into water
4. Saving

Capital

1. Head Office
2. Splendour
3. Credit
4. Money

The Employee may receive a bonus at the end of the year for good work.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employee will be paid each week.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employer will open a bank account to pay the employee’s salary into.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employee can choose when he/she wants to work.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employer will pay extra salary for extra hours worked by the employee in the winter.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employee will receive his/her usual salary, if he/she becomes ill, for up to 12 months.

1. Yes
2. No
3. Unclear
4. No mention in Contract

Any sick pay that is paid will be reduced by any state benefits the employee receives, when ill.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employer will pay money into a pension scheme for the Employee.

1. Yes
2. No
3. Unclear
4. No mention in Contract

The Employee must give one month’s notice if he/she decides to leave.

1. Yes
2. No
3. Unclear
4. No mention in Contract

Who does Argue & Bluster act for?

1. Acme 123 Ltd
2. Signal Engineers (Ukraine) Ltd
3. Robert Smith
4. All of them

How long does the lease now have to run before it finishes?

1. 60 months
2. 21 months
3. 24 months
4. 9 months

What is the amount paid in rent each quarter?

1. 14,000
2. 3,500
3. 10,000
4. 2,500

Which clause restricts assignment of the lease? 

1. Clause 7
2. Clause 14
3. No information in letter
4. Clause 4

Does the Landlord have to give permission for any assignment?

1. No
2. Lease does not say
3. Yes
4. In some circumstances

Which terms of the lease have the tenants broken?

1. Clause 7
2. Clause 14
3. Clause 7 and 14
4. No information in letter

Did the client approve of the proposed transfer of the lease?

1. Yes
2. No information in letter
3. No, they did not know of it

Will Signal Engineers (Ukraine) Ltd be the tenants in future?

1. No
2. Uncertain at this time
3. Yes
4. No information in letter

Why hasn't the client contacted the lawyers in Minsk?

1. He does not have their contact details
2. He hasn't decided what to do yet
3. The Minsk lawyers have no English speaking staff
4. He has contacted them and is waiting for a reply

Will the lawyer now contact the law company in Minsk?

1. No
2. Yes
3. Only if the client wants Signal Engineers (Ukraine) Ltd as tenants
4. No information in letter

In lieu of means

1. to wait in turn,
2. to pass the benefits,
3. in place of something/someone,
4. to dispose of something/someone

Contravene means

1. To impose a condition
2. To oppose a condition
3. To include a condition
4. To break a condition

A warranty is

1. a promise that a fact is true
2. a promise to pay money
3. compensation for loss
4. indemnity against a loss

A guarantee is

1. An indemnity against loss arising from a failure of a party to a contract
2. A promise to make good if one party to a contract fails to fulfil an obligation
3. An implied term in a contract
4. A statement of intention to perform by a party to a contract

Privity of contract means

1. the contract is private between three or more parties to it
2. the contract only imposes obligations and benefits upon the two parties to it
3. the contract must be kept secret
4. the written contract must be kept as short as possible

Consideration in Contract law means

1. Dealing kindly with the other party to the contract
2. Considering the interests of the other party to the contract
3. The length of time that a contract will take to perform
4. The thing of value that passes between the parties to the contract

Which one of the following four can enter into a contract

1. Undischarged bankrupts
2. Mental patients
3. 18-year-olds
4. Convicted fraudster

Damages means

1. The physical harm caused through one party breaking the contract
2. The damage to reputation suffered as a result of one party breaking the contract
3. The financial compensation awarded by a court
4. Illness caused by the emotional upset the breach of contract

Contained therein means

1. contained in this document
2. contained in another document
3. a power to be described later in the document attached to this document
4. to be deposited in a place identified in the contract

Power given hereby means

1. A power given by this document
2. A power given by another document
3. A power to be described later in this document
4. A power which has not yet been fully decided upon

A price sign is displayed on a suit of clothes in a shop window. Is this:

1. An offer to sell the suit at that price which the customer can accept
2. An indication that the shop he is prepared to make a contract on various unspecified terms
3. A statement of the price with no suggestion that it is for sale
4. A statement that the shop is willing to consider offers from customers at that price

In the course of negotiations one party offers to sell at a particular price, the other party offers a lower price. What effect does making this lower offer have?

1. It means that the contract is now in force at the lower price
2. It has no effect, it is just negotiations
3. The lower offer kills off the first offer at the higher price
4. The party offering the lower amount is now prevented from reducing the offer still further

What does ‘Quid pro quo’ mean?

1. Everything on offer is valued at one pound
2. Something given for something received
3. One party must pay the full price in cash
4. The identity of the payer is not disclosed

Your friend, John, is in urgent need of $1,000 to pay his rent. He offers to sell you his Ferrari sports car, worth $50,000 for $1,000. If you accept, is the legal position:

1. You have a valid contract and he must deliver the car
2. You have a contract but he can withdraw at any time
3. There is no contract as the car is worth many times more than $1,000
4. You have a valid contract provided it is in writing and signed by both you and John

What is a Debenture according to the law of England and Wales?

1. A loan to a company with no security provided to ensure repayment
2. A loan from a director to his own company
3. A mortgage on the director’s private property to guarantee repayment of a loan to the company
4. A loan to a company using the company’s assets as security

A director is:

1. A private individual with a contract to provide consultancy to the company
2. A free agent
3. An agent of the company
4. An officer of the company who owns shares in the company

The rules stating how a company would borrow money from a bank will be found in:

1. The memorandum of association
2. The company loan book
3. The articles of association
4. The schedule of directors’ duties

The price of the company’s share has stated in the memorandum of association is £2.50 per share. Is this the:

1. Issued price
2. Par value
3. Offer price
4. Actual value

Which of the following duties do directors owe to a company?

1. Fiduciary duty
2. The duty to only work for the company
3. The duty to maximise the share price
4. Duty to stay as a director until dismissed

Which of the following relates to a floating charge?

1. It can only relate to land
2. There is no security for the charge
3. There can only be one floating charge per company
4. If the loan contract is broken crystallisation may occur