CA Foundation Business Laws MTP January 2025: Question Paper and Solutions

How to Prepare for CA Foundation Business Laws

Solving past MTPs, RTPs, and suggested answers from previous examination windows is essential to mastering time management under the time limit applicable to your exam paper. Review step-by-step working notes, legal case precedents, and accounting disclosures with instant 24/7 AI tutor assistance via CApex.

Question directory and available solutions

39 indexed questions. Open a question to read its full statement and available answer.

1. Rahul owns an electronics store. Pankaj visited the store to buy a water purifier priced at 54,000/-. He specifically requested Rahul for a purifier…
2. Ashish, a trader, delivered a camera to Mohan on 'sale or return' basis. Mohan delivers the camera to Raj on the terms of 'sale for cash only or…
3. Akash of Jaipur sold100smart TV set @50,000/- per set to Barun of Delhi. He delivered the TV sets to Chirag , a transport carrier for transmission…
4. Ram wants to incorporate a company in which he will be the only member. According to provisions of the Companies Act, 2013, what type of company can…
5. Under what circumstances a Limited Liability Partnership is compulsorily required to change its name? Also, explain the compliance requirement…
6. What do you mean by a Small Limited Liability Partnership?
7. Ram and Shyam are partners in a partnership firm named as RS & Co. (the firm). Gaurav, a renowned businessman, is their common friend. Ram…
8. On admission as a new partner, Ashwin agreed to be liable for the existing debts (referred to as the old debts) of the firm by an agreement signed…
9. MN Limited borrowed a secured loan of 5 crore from Star Bank Limited (the bank) to meet its working capital requirement. However, the borrowing…
10. After incorporation of Unique Private Limited (the company) on 15 th May, 2024 the share certificates were issued to Arnav, Sohail and Suman being…
11. Explain the term Wagering agreement in the light of the Indian Contract Act, 1872. Also, explain some transactions resembling wagering transaction…
12. Mr. R extended a loan to Mr. D with X, Y, and Z as sureties. Each surety executed a bond with varying penalty amounts, X with a penalty of 10,000, Y…
13. X agrees to pay Y - 1,00,000, if Y kills Z. To pay Y, X borrows - 1,00,000 from W, who is also aware of the purpose of the loan. Y kills Z but X…
14. A promissory note, payable at a certain period after sight, must be presented to the maker thereof for payment. Under which scenarios, presentment…
15. What do you understand by Law? Also, elaborate the procedure for making a law.
16. Karan agreed to sell his laptop to Vishal for a price to be fixed by Kiran a hardware engineer. However, before the delivery of the laptop, Karan…
17. Mr. Y issued a cheque for 10,000 to Mr. Z which was dishonoured by the Bank because Y did not have enough funds in his account and has no authority…
18. Explain the term ‘Quasi Contracts’ and state their characteristics.
19. Mr. A was running an orphanage. His friend Mr. S, a philanthropist agreed to donate 2 lakh for treatment of a child, who was suffering from cancer.…
20. Mr. L let out his residential house to Mr. M for 50,000 p.m. for a period of one year. According to the Rent agreement, electricity bill will be…
21. XYZ Ltd. was incorporated to hold the patent for a new product. The company is expecting to start its commercial production within the next two…
22. State the modes by which a partner may transfer his interest in the firm in favour of another person under the Indian Partnership Act, 1932. What…
23. Sony, a friend of Priya wanted to buy her two-wheeler. Priya agreed to sell her two-wheeler to Sony and it was decided that price of her two-wheeler…
24. Define OPC (One Person Company) and state the rules regarding its membership. Can it be converted into a non-profit company under Section 8 or a…
25. A LLP is a new form of legal business entity with limited liability. It's an alternative corporate business vehicle that only gives the benefits of…
26. P, Q and R formed a partnership agreement to operate motor buses along specific routes for a duration of 12 years. After operating the business for…
27. A and B operate a textile merchant business in partnership. Mr. A finances the business and is a sleeping partner. In the regular course of…
28. Explain in brief with reference to the provisions of the Indian Contract Act, 1872, what are the rights enjoyed by Surety against the Creditor, the…
29. Mr. J entered into an agreement with Mr. S to purchase his house for 20 lakh, within three months. He also paid - 50,000/- as token money. In the…
30. Rama directs Shyam to sell laptops for him and agrees to give Shyam eleven percent (11%) commission on the sale price fixed by Rama for each laptop.…
31. What are Inchoate and Ambiguous Instruments under the Negotiable Instruments Act, 1881?
32. Describe in brief about the following Regulatory bodies of the Government of India: (i) Securities and Exchange Board of India (ii) Reserve Bank of…
33. Ram sells 200 bales of cloth to Shyam and sends 100 bales by lorry and 100 bales by Railway. Shyam receives delivery of 100 bales sent by lorry, but…
34. State the circumstances, in which a Court may, at the suit of the partner, dissolve a partnership firm under the provisions of the Indian…
35. In accordance with the provisions of the Indian Contract Act, 1872, answer the following: (i) Rights of Bailor against any wrong doer (Third Party)…
36. Aman drew the bill of exchange (the bill) on Baban, who accepted it, payable to Magan or order. Magan indorsed the bill to Gagan. Gagan indorsed the…
37. Reliable Limited, an Indian company, is a global leader in Petrochemical products. For payment of the sale price of machinery imported from Alex…
38. Answer the following as per the provisions of the Indian Contract Act, 1872: (i) 'Agent cannot personally enforce, nor be personally bound by,…
39. J, a wholesaler of premium Basmati rice delivered on approval 100 bags of rice of 10 kg each to a local retailer, on sale or returnable basis within…