CA Foundation Business Laws MTP January 2026: 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

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

1. Ashish goes to super market to buy an Air Conditioner. He selects a branded Air Conditioner having a price tag of 40,000 after a discount of 3000.…
2. Rakesh, a transporter was entrusted with the duty of transporting tomatoes from a rural farm to a city by Aswin. Due to heavy rains, Rakesh was…
3. "Whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm." Explain the mode of determining existence of…
4. Mrs. Seema went to the local rice and wheat wholesale shop and asked for 100 kgs of Basmati rice. The Shopkeeper quoted the price of the same as 125…
5. Explain listed company and unlisted company as per the provisions of the Companies Act, 2013.
6. Explain the classification of the companies on the basis of control as per the Companies Act, 2013.
7. Who are the individuals which shall not be capable of becoming a partner of a Limited Liability Partnership?
8. 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…
9. 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…
10. XYZ Limited is a company incorporated under the Companies Act, 2013. The paid up share capital of the company as on 31.03.2025 is as under: (1)…
11. M and N holding70% and 30% of the shares in the company. Both died in an accident. Answer with reference to the provisions of the Companies Act,…
12. Explain in brief with reference to the provisions of the Indian Contract Act, 1872 the rights enjoyed by Surety against the Creditor, the Principal…
13. Mr. Gaurav and Mr. Vikas entered into a contract on 1 st July, 2024, according to which Mr. Gaurav had to supply100tons of sugar to Mr. Vikas at a…
14. What is a cheque under the Negotiable Instruments Act, 1881, and who are the parties involved? What are the essential elements of a cheque?
15. Rachit arranges an auction to sale an antic wall clock. Deepa, being one of the bidders, gives the highest bid. For announcing the completion of…
16. “Partner indeed virtually embraces the character of both a principal and an agent”. Describe the said statement keeping in view of the provisions of…
17. State the essential elements of a contract of bailment.
18. 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…
19. Define Misrepresentation and Fraud. Explain the difference between Fraud and Misrepresentation as per the Indian Contract Act, 1872. OR What is the…
20. J, a wholesaler of premium Basmati rice delivered on approval100bags of rice of 10 kg each to a local retailer, on sale or returnable basis within a…
21. Examine the validity of the following agreements under the provisions of the Indian Contract Act, 1872 and justify your answer: (i) Mrs. Palak pays…
22. State with reasons whether the following companies can be treated as Small Companies with reference to the provisions of the Companies Act, 2013: 1.…
23. M/s RK Traders (Buyer) made a contract with M/s CK Traders (Seller) for purchase of 2000 kg of basmati rice specifically grown in Chhattisgarh State…
24. Kartik agreed to sell his laptop to Vasant for a price to be fixed by Kusum a hardware engineer. However, before the delivery of the laptop, Kartik…
25. Referring to the provisions of the Companies Act, 2013, answer the following: "Corporate veil sometimes fails to protect the members of the company…
26. What is the effect of Memorandum and Articles when registered?
27. Referring to the provisions of the Limited Liability Partnership Act, 2008, answer the following: Under what circumstances a Limited Liability…
28. What do you mean by a Small Limited Liability Partnership?
29. ABC & Co. is a renowned partnership firm doing business in textile industry from last twenty years. But due to technical up-gradation, firm incurred…
30. The Object clause of Memorandum of Association of ABC Pvt. Ltd. authorized the company to carry on the business of trading in property in Gurgaon.…
31. According to provisions of the Indian Contract Act, 1872, define the following terms with reference to contract of guarantee: (i) Nature and extent…
32. A, B and C jointly promised to pay D a sum of 6,000. Examine, considering the provisions of the Indian Contract Act, 1872 - (i) Can D compel any of…
33. What are the rules governing the compensation payable in the event of dishonour of a negotiable instrument under the provisions of the Negotiable…
34. Explain in brief the important functions played by the Ministry of Finance, the Ministry of Corporate Affairs and the Ministry of Law and Justice in…
35. Ashok, a trader, delivered a camera to Mangesh on 'sale or return' basis. Mangesh delivers the camera to Rahul on the terms of 'sale for cash only…
36. Ansari of Jaipur sold 100 smart TV set @50,000/- per set to Baburam of Delhi. He delivered the TV sets to Chetan, a transport carrier for…
37. State the circumstances, in which a Court may, at the suit of the partner, dissolve a partnership firm under the provisions of the Indian…
38. In accordance with the provisions of the Indian Contract Act, 1872, answer the following: (i) Rights of Bailor against any wrong doer (Third Party)…
39. Ram purchased a second-hand car from his friend Rohan for 5 lakhs on 10th November, 2022. He paid 4 lakh immediately and promised to pay 1 lakh…
40. With reference to provisions of the Indian Contract Act, 1872 define the following terms: (i) Quasi-contracts and its salient features (ii)…
41. With reference to provisions of the Sale of Goods Act, 1930, answer the following: (i) What are the consequences of the destruction of specified…