Learning Outcomes
After reading this article, you will be able to: identify and distinguish relevant facts and legal issues from a scenario; apply the correct legal rules to complex fact patterns; reach justified legal conclusions; and construct clear, well-supported advice as required for SQE2 analysis, client reporting, and oral assessments.
SQE2 Syllabus
For SQE2, you are required to understand the core elements of analysis and reporting when handling legal matters. During your revision, pay particular attention to:
- Analysing a scenario to identify material facts and relevant legal issues.
- Accurately applying legal principles to those facts.
- Justifying your legal conclusions with reference to authority and reasoning.
- Communicating advice clearly and succinctly, both in client letters and oral reporting.
- Distinguishing between law, fact, and advice/opinion when explaining a course of action.
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- In SQE2, what is meant by "applying law to facts" and why must your written conclusions avoid simple recitation of legal rules?
- When reporting to a client, how should you structure your advice in relation to legal risk and practical options identified from the scenario?
- True or false? If two legal options exist but you cannot decisively recommend one over the other, you should present only the stronger option in your report.
- Which of the following is NOT an aspect of good factual analysis in SQE2? a) Ignoring facts you consider irrelevant without justification. b) Distinguishing between background and key facts. c) Noting possible factual uncertainties or missing information. d) Identifying which party bears the burden of proof.
Introduction
Legal practice requires not just knowledge of the law, but the ability to apply legal principles accurately to the facts and deliver conclusions in a way the client or audience can understand and rely upon. In SQE2, this means you must move beyond simple identification of issues to rigorous analysis, justified conclusions, and clear reporting of risks and advice.
Core Analysis Skills
Effective analysis and reporting require you to process information systematically as follows:
Identifying Relevant Facts
The starting point in any legal scenario is to distinguish facts that are material from background detail. Not all facts will affect the legal outcome. SQE2 examiners will expect you to:
- Highlight facts that are determinative of legal issues.
- Note factual uncertainties or gaps that affect your ability to advise.
- Recognise where further evidence might alter your advice or change the balance of risk.
Key Term: Material Fact
A fact that could affect the outcome of a legal issue or the advisability of a particular course of action.
Spotting Legal Issues
After working out which facts are important, the next step is to identify the legal issues those facts trigger. This involves:
- Recognising which statutory provisions or case law may be applicable.
- Distinguishing between issues of law and issues of fact.
- Clarifying which facts support or weaken each legal issue.
Key Term: Legal Issue
A question about the application, interpretation, or consequences of a legal rule to particular facts.
Applying Law to Facts
Application is the heart of SQE2 analysis. You must not simply restate the law or set out facts separately—instead, you should:
- Integrate the legal rule and the fact pattern.
- Show clearly how each relevant fact influences the legal outcome.
- Evaluate how a court or competent authority is likely to resolve uncertainties.
- Consider alternative interpretations or likely arguments for both sides.
Key Term: Application
The process of connecting legal rules to facts to determine the likely legal outcome.
Drawing Conclusions and Advice
Based on your application, you must reach reasoned, defensible conclusions. This requires you to:
- Clearly answer the client’s question or scenario task.
- Justify your conclusion by showing the logical steps taken.
- Address legal or factual uncertainties or ambiguities in your reasoning.
- Offer balanced advice that considers practical risk as well as strict legal rights.
Key Term: Conclusion
A clear and justified answer to a legal issue, based on applying the law to the material facts.
Communicating Analysis and Reporting
In both written and oral SQE2 tasks, reporting is not just reciting your conclusion—it means presenting your reasoning and advice in a clear, structured way. This involves:
- Explaining, not just stating, your advice or recommendations.
- Addressing client priorities and possible consequences for each option.
- Distinguishing between legal advice and factual information.
- Using plain English and avoiding unexplained technical terms.
Key Term: Advice
Practical guidance for the client, based on stated legal conclusions and taking into account the client’s objectives.
Worked Example 1.1
Scenario:
Your client, Alice, entered into a contract with Bob for supply of goods. The contract stated delivery by 1 June. Delivery took place on 2 June due to Alice’s late payment. There is a clause stating “time of delivery is of the essence”. Bob claims repudiation, Alice seeks damages for late delivery. Apply the law and advise.
Answer:
The clause specifying "time is of the essence" renders timely delivery a condition. Although delivery was late, the delay was due to Alice’s late payment, which may excuse Bob’s late performance. Applying principles of contract law regarding conditions and the effect of a party's own breach, Bob may have a defence to repudiation. Alice is entitled to damages only if she proves loss from the single day’s delay and cannot recover if her breach caused Bob’s late delivery.
Worked Example 1.2
Scenario:
You are advising a landlord who wishes to forfeit a lease for tenant breach. The facts show several rent payments made late but subsequently accepted, and the lease is unclear on treatment of habitual late payment. What is your analysis?
Answer:
Material facts include the pattern of late payments and the landlord’s acceptance. The law on waiver of forfeiture rights and implied waiver by conduct applies. By repeatedly accepting late rent, the landlord may be presumed to have waived strict rights unless clear notice was given to the tenant. On balance, forfeiture is unlikely to succeed unless the landlord can show no waiver occurred and reserve the right expressly in writing at the next payment.
Exam Warning
SQE2 candidates commonly lose marks by restating statute or case authorities without explaining how those rules operate in their client’s actual scenario. Ensure every conclusion is directly substantiated by reference to both relevant facts and the applicable law.
Best Practice When Reporting Conclusions
- Structure your answer by setting out the facts, issues, law, application, and conclusion (FIRAC/IRAC model).
- Avoid unsupported assertions—always explain your reasoning with both law and fact.
- Set out any assumptions or limits to your advice if further evidence is required.
- For client communication, explain outcomes and risk in clear, practical language, indicating possible next steps.
Revision Tip
In your practice answers, underline or highlight material facts and write one sentence for each linking it to your conclusion using relevant law—this develops the habit of thorough application.
Key Point Checklist
This article has covered the following key knowledge points:
- Distinguishing material facts and legal issues is essential for accurate SQE2 analysis.
- Effective legal application integrates law and facts, not just stating each separately.
- Conclusions must be justified with clear reasoning, addressing legal and factual uncertainties.
- Reporting should distinguish between fact, law, advice, and risk, using plain English.
- Structured analysis and clear communication are assessed in every SQE2 assessment.
Key Terms and Concepts
- Material Fact
- Legal Issue
- Application
- Conclusion
- Advice