The law an adviser bumps into. Not a law degree — the specific concepts that change what advice is appropriate: how a contract forms, when someone acts as agent, how property is owned, what a trust does, and what happens on insolvency or death. Questions are applied, not academic.
What legal concepts covers in the R01 exam
- Formation of a contract — offer, acceptance, consideration and capacity
- Agency and the authority of an agent to bind a principal
- Ownership of property: joint tenancy versus tenancy in common
- Trusts — settlor, trustee, beneficiary — and why they are used
- Powers of attorney, mental capacity and acting for others
- Bankruptcy, insolvency and the effect of death on assets
Where candidates lose marks
Confusing joint tenancy (right of survivorship) with tenancy in common (a defined share that passes under a will).
Assuming a power of attorney survives the donor losing capacity — only a lasting/enduring one does.
Forgetting that consideration is needed for a simple contract but not for a deed.
Worked example questions
Real R01-style questions from our bank, with the correct answer and the reasoning. No sign-in needed.
What is the primary purpose of a winding-up petition?
- ATo approve a scheme of arrangement
- BTo seek a court order to liquidate a companyCorrect
- CTo merge two insolvent companies
- DTo appoint directors in place of existing ones
- ETo restructure company debts
Why: A winding-up petition is filed to request the court to liquidate a company that cannot pay its debts.
Which statute governs intestacy rules in England and Wales?
- ATrustee Act 2000
- BAdministration of Estates Act 1925Correct
- CInheritance (Provision for Family and Dependants) Act 1975
- DLaw of Property Act 1925
- ESuccession Act 1965
Why: The Administration of Estates Act 1925 sets out intestacy rules in England and Wales, determining how estates are distributed without a will.
Which insolvency term describes continuing to trade to maximise creditor returns after liquidation begins?
- AWrongful trading
- BTrading in liquidationCorrect
- CReceivership
- DAdministration
- EFraudulent trading
Why: Liquidators may allow trading in liquidation if it benefits creditors by maximising the realisation of assets.
Free, exam-style R01 questions across the syllabus, with an explanation for every answer and a per-topic breakdown at the end. The full 100-question mocks come with Pro.
Start free practiceLegal concepts — questions answered
What is the difference between joint tenancy and tenancy in common?
Under a joint tenancy, an owner's share passes automatically to the surviving owner(s) by survivorship on death. Under a tenancy in common, each owner holds a defined share that passes under their will. This distinction is commonly tested in R01.
When does a power of attorney survive loss of mental capacity?
Only a lasting power of attorney (or an older enduring power) continues once the donor loses mental capacity. An ordinary power of attorney ends at that point — a frequent R01 trap.
The other R01 syllabus areas
Independent study material, not affiliated with or endorsed by the Chartered Insurance Institute. Always check the official CII website for the current R01 syllabus, format and fees. The CII sets a nominal pass mark of 65% and adjusts it per sitting.