CA Foundation Law – Study Material, Weightage & Study Strategy 2023

The CA Foundation test is the first one a CA student takes. Students taking the CA Foundation test must pass the four exams in business law, economics, maths, and foundational accounting. One of the crucial exams on which students must maintain their attention is the business law exam. The ICAI continuously updates its laws to reflect changes. Students are also required to keep the ICAI informed.
All of the crucial issues and details about CA Foundation Law will be covered below. After reading this article, you will be able to comprehend and gain a complete understanding of the CA Foundation Law Study Material, Paper, Pattern, Syllabus, Study Material, CA Foundation Law Previous Year Question Paper, CA Foundation Law Revision Test Paper, Mock Test Paper, and Sample Paper. After doing this, students can begin their CA Foundation Law preparation with a
study schedule.

The second paper of the CA Basic Topics, which comes after the principle and practice of accounting, is about business law, correspondence, and reporting. Business law papers for the CA Foundation are for 60 marks, whereas business correspondence papers are worth 40 marks. All of the laws, modifications, and rights necessary to operate a business are included in CA Basic Business Law. It includes all the activities that students must complete in their entirety.
The Indian Contract Act of 1872, The Sale of Goods Act, Indian Partnership Act, and Indian Companies Act are some of the most crucial topics of CA Foundation business law.

The second paper of the CA Basic Topics, which comes after the principle and practice of accounting, is about business law, correspondence, and reporting. Business law papers for the CA Foundation are for 60 marks, whereas business correspondence papers are worth 40 marks. All of the laws, modifications, and rights necessary to operate a business are included in CA Basic Business Law. It includes all the activities that students must complete in their entirety.
The Indian Contract Act of 1872, The Sale of Goods Act, Indian Partnership Act, and Indian Companies Act are some of the most crucial topics of CA Foundation business law.

Below is the latest CA Foundation Business Law Paper Pattern. 

Business law makes for 60 of the 100 points for the CA Foundation’s Business correspondence and reporting paper. An entire essay is an open-ended form of test. The CA Foundation law paper exam has a two-hour time limit. It is suggested that students get ready by studying the notes for the CA Foundation Law exam. Because there are several amendments and dates, it is vital to periodically review them. By taking notes, you can recall the Acts and legislation and prevent confusion. Business legislation in California is necessary. Students must complete an aptitude test based on a case study of CA Foundation legislation. As they finish their subjects, students should start preparing for a case study and practice exams. The CA Foundation June 2023 Exam Date Sheet/Time Table will shortly be made available by ICAI.

CA Foundation Business Law Syllabus 2023

CA Foundation syllabus revolves around mainly five topics of different business acts. Below are the CA Foundation Law 2023 syllabus. 

CA Foundation Law Indian Contract Act, 1872- An overview of Sections 1 to 75, including the general nature of the contract, consideration, other necessary conditions for a binding agreement, contract performance, breach of contract, contingent agreements, and quasi-contracts.

CA Foundation Law The Sales of Goods Act,1930- Creation of the sales contract, terms, and warranties, Delivery of the goods and transfer of title, as well as the rights of an unpaid seller.

CA Foundation Law The Indian Partnership Act, 1932- Rights and obligations of partners, general nature of partnerships, reorganisation of businesses, Registration and firm dissolution.

CA Foundation Law The Limited Liability Partnership Act, 2008- Introduction: nature and purpose, key elements, LLP characteristics, incorporation, and differences from other organizational types.

CA Foundation Law The Companies Act, 2013- Company fundamentals, the corporate veil theory, forms of share capital, classes of corporations, company incorporation, memorandum of association, articles of association, The Indoor Management Doctrine.

We have listed the chapter-by-chapter weighting for CA Foundation Business law below. Students can begin preparing for the Test after going over the CA Foundation Business Law Weightage. The ICAI has split chapters and topics into different weight categories so that you can devote more attention to the chapters that are more crucial.

CA foundation business Law 2023 ( 60 Marks) 

At the provided link below, students can obtain the CA Foundation Business law study guide. The CA Foundation Business Law study guide covers every subject that will be covered on the test. To get the PDF of the CA Foundation Law Book, simply click on the links below. Students should use the CA Foundation Business law Notes and CA Foundation Business law books if they have any questions about the topics.

Chapter 1: The Indian Contract Act, 1872

Unit 1: Nature of Contracts- The most significant area of commercial or mercantile law is the Law of Contracts. Everyone is impacted, especially trade, commerce, and industry. One could argue that the contract is the cornerstone of civilization. The Indian Contract Act, 1872 governs the law pertaining to contracts. On September 1st, 1872, it went into effect. The Act is described as one that “defines and amends various aspects of the legislation relating to contract” in the preamble. It encompasses the entirety of India.

Unit 2: Consideration- The promise’s agreed-upon payment for the promisor’s obligation is referred to as the promisee’s consideration. A valuable consideration in the sense of the law may consist either in some right, interest, profit, or benefit accruing to one party (i.e., the promisor), or in forbearance, detriment, loss, or responsibility given to, suffered by, or undertaken by the other (i.e., the promisee), as stated in the well-known English case of Misa v. Currie.

Unit 3: Other Essential Elements of a Contract- An agreement is the consequence of a proposal from one side and its acceptance by the other party, as was already said. Offer, acceptance, and consideration have already been covered in great depth. The components of a legally binding contract will now be covered in greater detail.

According to Section 10 of the Indian Contract Act, of 1872, a contract must meet the following requirements to be deemed valid: 

(1) the parties must be legally capable of entering into a contract; 

(2) it must be made with their free consent; 

(3) it must be made for a lawful consideration and with a lawful purpose; and 

(4) it must not have been expressly declared void by the law.

Unit 4: Performance of Contract- Unless the performance is waived or excused by the terms of the Contract Act or another legislation, the parties to a contract must either carry out their obligations or offer to do so. Unless a different intention is clear from the contract, promises are binding on the promisor’s representatives in the event of the promisor’s death before the performance.

Unit 5: Breach of Contract and its Remedies- A contract break that occurs before the deadline for performance has passed is known as an anticipatory breach. Anticipatory Breach refers to the promisor’s complete refusal to keep his word and his indication of this refusal before the performance date has come and gone.

A contract can be anticipatedly broken in one of the following two ways: 

(a) explicitly through spoken or written words; or 

(b) implicitly by one of the parties actions.

Unit 6: Contingent and Quasi Contract- The term “contingent contract,” its components, and the laws governing its execution will all be briefly covered in this subject. In some circumstances, an obligation can be created without a contract, according to the Contract Act. These commitments result from specific relationships that cannot strictly speak be referred to as contracts. Despite the absence of an offer, acceptance, consensus and idem, agreement, or commitment, the law nevertheless imposes obligations on one party and grants rights to the other. We will examine these “Quasi-contracts” scenarios.

Chapter 2: The Sale of Goods Act, 1930

Unit 1: Formation of the Contract of Sale- One of the particular types of contracts recognized and governed by the law in India is the sale of goods. A common deal between a buyer and a seller is a sale. According to the Sale of Products Act of 1930, the parties may expressly agree to amend certain legal elements. This independence is, however, sometimes severely constrained.

The Sale of Products Act of 1930 is a statute that clarifies and updates the rules governing the selling of commodities. It encompasses the entirety of India. It became effective on July 1st, 1930.

Unit 2: Conditions & Warranties- To persuade the intended buyer to buy the items, a seller typically makes several assertions or representations at the moment of sale. These statements typically relate to the nature, quality, and suitability of the items for the intended use of the buyer. When these claims or assertions are not included in the sale contract, they are irrelevant and have no bearing on the agreement in any way. Yet, they become relevant and have legal implications for the contract of sale when they are a part of it and the buyer depends on them.

Unit 3: Transfer of Ownership and Delivery of Goods- Property ownership is transferred from the seller to the buyer during a sale of goods. Determining the point at which ownership transfers from the seller to the buyer is crucial.

Unit 4: Unpaid Seller- Reciprocal commitments make up a contract. In a sale agreement, the buyer is required to make the payment if the seller is required to provide the products. The seller will have some rights as an unpaid seller if the buyer is unable or unwilling to pay.

A seller of goods is deemed to be a “Unpaid Seller” in accordance with Section 45(1) of the Sale of Goods Act, 1930, when: 

(a) The entire purchase price has not been paid or offered and the seller has an urgent right of action for the payment.

(b) In the event that a bill of exchange or other negotiable instrument has been accepted as conditional payment and the condition on which it was accepted has not been met due to the instrument’s dishonor or another factor.

Chapter 3: The Indian Partnership Act, 1932

Unit 1: General Nature of a Partnership- The relationship between people who have decided to split the earnings from a firm that is operated by all of them acting for all of them is known as a “partnership.” Individual partners of individuals who have formed a partnership are referred to as “partners” and together as “a firm,” and the name under which their business is operated is referred to as the “firm name.”

Unit 2: Relations of Partners- A partnership is a relationship between two or more people who have agreed to split a company’s revenues. They can all work together to conduct business, or any one of them can act on their behalf. According to this concept, a partner may act as an agent for the other partners.

Unit 3: Registration and Dissolution of a Firm- The registration of a partnership firm is optional and not required under the terms of the Indian Partnership Act, of 1932. The partners will decide if they want to. The firm may be registered at the time of its establishment, incorporation, or ongoing operation as a partnership.

Chapter 4: The Limited Liability Partnership

The Limited Liability Partnership- The Limited Liability Partnership Act of 2008 was announced by the Ministry of Law and Justice on January 9, 2007. The Limited Liability Partnership Act of 2008 was enacted by the Indian Parliament on December 12, 2008, and signed into law by the President of India on January 7, 2009.

Chapter 5: The Companies Act, 2013

The Companies Act, 2013- To codify and update the law about firms, the Companies Act, of 2013, was enacted. The Companies Act of 1956 came before the Companies Act of 2013.