Solicitors Qualifying Examination (SQE) Practice Exa\

What defines a vested interest?

1. An interest that is conditional

2. An interest that is uncertain

3. An interest that is unconditional

4. An interest that is temporary

The correct answer is: An interest that is unconditional

A vested interest is defined as an interest that is unconditional, meaning that the individual holding the interest has a definite and secure claim to it that cannot be taken away or altered based on future events. This kind of interest arises when certain conditions or contingencies have been satisfied, ensuring the holder's right to the property or benefit at a specific point in time. In contrast, a conditional interest would depend on a future event occurring, which may not guarantee the holder's claim indefinitely. Similarly, an uncertain interest implies that the rights of the holder are not clearly established or may hinge on uncertain factors. A temporary interest means that the benefit or right does not last indefinitely and might expire after a certain period or condition. Thus, only an unconditional interest, as described in the answer, accurately reflects the nature of a vested interest.