Part C You may wish to use this document to record and submi…
Part C You may wish to use this document to record and submit your answers for Part C Part C Answers A client sends a cheque for £800 to their solicitor to be held on account of costs. The solicitor places the cheque into the client account and pays court fees of £150 on the client’s behalf. Three days the solicitor receives a phone call from the bank to say that the cheque had been dishonoured. What potential breach may have taken place in this instance? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor receives £1,000 from his client. £200 relates to search fees already incurred by the firm, £300 relates to professional charges billed to date and £500 is to be held on account of costs. The solicitor is considering his obligations when banking the money. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor acts for a client in the sale of a property. The solicitor also acts for the son of the client in the purchase of his first home. Upon the completion of the sale the client suggests that part of the money she received should be transferred to her son’s account. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A firm is considering the use of Third-Party Managed accounts for use with clients in respect of handling money related to the regulated services provided to them by the firm. What key information needs to be given to clients about the use of these accounts? What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A chartered surveying company is purchasing an office block. Several surveys have been carried out on the property by a company instructed by the acting solicitor. The solicitor has £50,000 an account for this client and the solicitor has received an invoice from the surveyors for £10,000 plus VAT, addressed to the solicitor’s firm. How should the solicitor deal with the invoice? How can this be dealt with from a VAT point of view. (2 Marks) A solicitor is acting for a company called ‘Zoomers’ that imports high value cars from Europe at a reduced price to be sold in the UK for a substantial profit. Due to a lack of trust in ‘Zoomers’ three major investors in the firm do not want to pay directly to the company, but request to pay the money directly into the solicitors client account, and the solicitor would then transfer the funds to the manufacturers of the cars. All requisite money laundering checks have been carried out on his client. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A sole practitioner has come to the end of her first accounting period and has had an very profitable year. She has held client funds in excess of £450,000, only £75,000 of which related to Legal Aid payments. Before she approaches her accountants who charge a large fee she wishes to have a clear understanding of whether she is required to obtain and submit an accountants report (the Report). What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor has won a litigation case against a local council and has received £150,000 on behalf of his client. His client has requested that he holds the money for 3 months, while she finds a new flat to purchase, the solicitor can then carry out the conveyance for her. The solicitor wishes to retain any interest earned from this money. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor represents a client who is selling his house on Wells Street for £500,000 and purchasing a house on Monmouth Street for £700,000. Prior to the exchange of contracts, the solicitor receives a deposit of £50,000 hold as stakeholder. How should the solicitors deal with the £50,000? What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor has been instructed to register a trademark for her client. The client comes into the office at 1 p.m. and provides the solicitor with £500 in cash to pay for the registration. The solicitor agrees to get this out first thing in the morning and the client rushes out of the office. What issue(s) must the solicitor consider here in dealing with the £500 cash? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A solicitor has assisted in arranging insurance for a client via the firm’s Insurance Mediation Officer and the insurance company has sent the firm a commission payment of £300. There is no agreement in place relating to commission payments between the client and the solicitor. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) A conveyancing solicitor is acting for a client on the sale and purchase of properties. The solicitor receives a deposit from the purchaser of one of the properties for £50,000 and due to a delay relating to an issue that the structural survey has brought to light the money is held in the client account for 3-months. What issue(s) must the solicitor consider here? Include a reference to the SRA Accounts Rules if appropriate. (2 Marks) You have started your training contract at a local firm and you have finished your first 6 months when it comes to your attention that the partner of your division is routinely overcharging clients by up to 2000%. Recently you have been asked by this partner to do the same on your files, but you refused in the first instance. Today the partner has instructed you directly to overcharge on a file and informed that your training contact may be cancelled if you do not do as instructed. Please outline your obligations under the Solicitor Regulation Authority rules and briefly consider any consequences for the firm and for you personally. (6 Marks)