INTRODUCTION ABOUT EXAM (CA FOUNDATION)
The CA related exams are conducted by the Institute of Chartered Accountants of India (ICAI).
Fees:
• Total fees of CA course - Approx. Rs. 90,000/- (Rupees Ninety Thousand).
• Total fees of CA Foundation - Approx. Rs. 11,000/- (Rupees Eleven Thousand).
4 Stages:
• CA Foundation;
• CA Intermediate/Inter;
• Articleship/Training;
• CA Final.
Foundation: 4 Papers –
• Paper 1: Accounting (Subjective – 100 Marks);
• Paper 2: Business Law (Subjective – 100 Marks);
• Paper 3: Quantitative Aptitude (Objective – 100 Marks);
• Paper 4: Business Economics (Objective – 100 Marks).
A candidate is declared to have passed the Foundation examination, if he obtains at one sitting
a minimum of 40% marks in each paper and minimum of 50% marks in the aggregate of all
the papers.
ABOUT STUDY MATERIAL
The contents of study material are developed by Board of Studies (Academic), ICAI with an
objective to synchronize the syllabus with the International Education Standards (IESS) of
IFAC (International Federation of Accountants). The Study Material has not been specifically
discussed by the Council of the Institute or any of its Committees.
The requirements of “IES 1 Entry Level Requirements” have been kept in mind while
developing the different chapters of study material.
The study material also lays emphasis on National Education Policy 2020 (NEP 2020)
initiatives like conceptual clarity rather than rote learning and new pedagogical and curriculum
restructuring based on the use of technology while teaching.
Laws in general, regulate the relationship of business and profession with the society. As
Business forms an integral part of the society, so, law is essential for regulating the rules by
which people and businesses connect with each other. Law affects almost every function and
area of business. In order to resolve the conflicts between social groups and commercial
establishments, Law has to be in place.
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SYLLABUS OF BUSINESS LAWS:
The syllabus of Business Laws has been segregated into seven chapters covering the following:
Chapter 1, Indian Regulatory Framework: It talks about some of the major Regulators and
the laws which are enforced by them. (Marks: 5 to 10; Questions: 1 to 2)
Chapter 2, The Indian Contract Act, 1872: This Act basically identifies the ingredients of a
legally enforceable valid contract in addition to dealing with certain special type of contractual
relationships like indemnity, guarantee, bailment, pledge, quasi contracts, contingent contracts,
etc. (Marks: 30 to 35; Questions: 5 to 6)
Chapter 3, The Sale of Goods Act, 1930: This is one of the specific forms of contracts
recognized and regulated by law in India. Sale is a typical bargain between the buyer and the
seller. The provisions of the Act are applicable to the contracts related to the sale of goods
which means movable properties. (Marks: 20 to 25; Questions – 3 to 4)
Chapter 4, The Indian Partnership Act, 1932: This Act provides Rules and Regulations for
a general form of Partnership when two or more people come together as partners. (Marks: 18
to 22; Questions: 3 to 4)
Chapter 5, The Limited Liability Partnership Act, 2008: This Act provides Rules and
Regulations which contains elements of both ‘corporate structure’ as well as ‘partnership firm
structure’. In order to acquaint the students with this significant Act, only introduction is
covered at this level so they can easily understand its application at Intermediate level. (Marks:
5 to 10; Questions: 1 to 2)
Chapter 6, The Companies Act, 2013: The Act regulates the functioning of Companies in
India. This is the most important piece of legislation that empowers the Central Government
to regulate the formation, financing, functioning and winding up of companies. (Marks: 20 to
25; Questions: 3 to 4)
Chapter 7, The Negotiable Instruments Act, 1881: The Law in India relating to negotiable
instruments is contained in the Negotiable Instruments Act, 1881. This is an Act to define and
enforce the law relating to promissory notes, bills of exchange and cheques. (Marks: 10 to 15;
Questions: 1 to 2)
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OBJECTIVE OF BUSINESS LAWS:
To develop general legal knowledge of the law of Contracts, Sales and understanding of
various forms of businesses and their functioning to regulate business environment and to
acquire the ability to address basic application-oriented issues.
SKILL ASSESSMENT IN BUSINESS LAWS:
Level I – Comprehension and knowledge – 45% to 65%. Remembering and
Understanding - The perception and comprehension of the importance of an area utilizing
knowledge gained.
Level II – Application and analysis – 35% to 55%. Application - Using or demonstrating
knowledge, concepts, or techniques. Analysis - The examination and study of the
interrelationships of distinct areas in order to identify root causes and find evidence to support
judgments.
CONTENTS OF BUSINESS LAWS:
1. Indian Regulatory Framework: Major Regulatory Bodies such as Ministry of Finance,
Ministry of Corporate Affairs, SEBI, RBI, IBBI, Ministry of Law and Justice etc.
2. The Indian Contract Act, 1872: General nature of contract, Consideration, Other essential
elements of a valid contract, Performance of contract, Breach of contract, Contingent and Quasi
Contract, Contract of Indemnity and Guarantee, Contract of Bailment and Pledge, Contract of
Agency.
3. The Sale of Goods Act, 1930: Formation of the contract of sale, Conditions and Warranties,
Transfer of ownership and Delivery of goods, Unpaid seller and his rights.
4. The Indian Partnership Act, 1932: General Nature of Partnership, Rights and Duties of
partners, Reconstitution of firms, Registration and Dissolution of a firm.
5. The Limited Liability Partnership Act, 2008: Introduction-covering nature and scope,
Essential features, Characteristics of LLP, Incorporation and Differences with other forms of
organizations.
6. The Companies Act, 2013: Essential features of company, Corporate veil theory, Classes
of companies, Types of share capital, Incorporation of company, Memorandum of Association,
Articles of Association, Doctrine of Indoor Management.
7. The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments,
Characteristics, Classification of Instruments, Different provisions relating to Negotiation,
Presentment of instruments, Rules of Compensation.
Note: If new legislations are enacted in place of the existing legislations, the syllabus would
include the corresponding provisions of such new legislations with effect from dates notified
by the Institute.
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