SQE1 sample questions

Question 75

A private limited company (‘the Seller’) entered into a contract with another private limited company (‘the Buyer’) for the sale of 8,000 Christmas trees at a price of £160,000. The contract provided for interest at 7% per annum to be paid on all overdue payments.

The Seller delivered the trees in accordance with the contract, but the Buyer has not paid the price. The Seller has complied with the necessary pre-action requirements and now wishes to issue proceedings against the Buyer for the outstanding sum due, and interest on that sum. The Seller’s solicitor is drafting the claim form.

Which claim for interest should be included in the claim form?

A. Interest at 8% per annum under section 35A of the Senior Courts Act 1981 or section 69 of the County Courts Act 1984.

B. Interest at 7% per annum under the contract.

C. Interest at 8% per annum over the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998.

D. Interest at 10% per annum under section 35A of the Senior Courts Act 1981 or section 69 of the County Courts Act 1984.

E. Interest at 1% per annum over the Bank of England base rate under either section 35A of the Senior Courts Act 1981 or section 69 of the County Courts Act 1984.


B - Interest at 7% per annum under the contract.


 

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