CA Foundation Business Laws MTP May 2026: Question Paper and Solutions

How to Prepare for CA Foundation Business Laws

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Question directory and available solutions

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

1. Mr. Gaurav and Mr. Vikas entered into a contract on 1 st July, 2025, according to which Mr. Gaurav had to supply100tons of sugar to Mr. Vikas at a…
2. R gives his umbrella to M during raining season to be used for two days during Examinations. M keeps the umbrella for a week. While going to R’s…
3. Prasad incorporated an OPC to run his new start- up in May, 2021. OPC borrowed 50 Lakhs to meet its long term fund requirements and 25 lakh to meet…
4. 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…
5. X contracted to sell his car to Y. They did not discuss the price of the car at all. X later refused to sell his car to Y on the ground that the…
6. Explain listed company and unlisted company as per the provisions of the Companies Act, 2013.
7. State giving reasons whether the following are partnerships as per the provisions under the Indian Partnership Act, 1932. X, Y, and Z agree to…
8. X, a publisher, agrees to publish a book at his own expense written by Y and to pay Y, half of the net profit. Does this create a relationship of…
9. “An anticipatory breach of contract is a breach of contract occurring before the time fixed for performance has arrived”. Also, discuss the effect…
10. Bhuvika borrowed - 4,75,000/- from her relative Madan on 5 th April, 2020 on interest @1% per month for 5 year for running her Cosmetics store. She…
11. What is a Bill of Exchange? Also, explain its essential characteristics under the Negotiable Instruments Act, 1881.
12. What is the significance of the Supreme Court and High Court in the Indian judiciary?
13. Mr. G sold some goods to Mr. H for a certain price by issue of an invoice, but payment in respect of the same was not received on that day. The…
14. Alok bought some goods from Manish on credit. Later, he issued a cheque for the dues from his bank account and asked Manish to encash the cheque…
15. Define Misrepresentation and Fraud. Explain the difference between Fraud and Misrepresentation as per the Indian Contract Act, 1872.
16. What do you mean by suit for specific performance? State any two conditions when court allows this remedy according to provisions of the Sale of…
17. 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…
18. Mr. A offered to sell 25 chairs to Mr. B @1,500 per chair on 12.02.2026. A promised B that he would keep the offer open till 15.02.2026. However, on…
19. When does dissolution of a partnership firm take place under the provisions of the Indian Partnership Act, 1932? Explain.
20. 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…
21. "Corporate veil sometimes fails to protect the members of the company from the liability connected to the company's actions." Explain any three…
22. Ram and Shyam are partners in a partnership firm styled as RS & Co. (the firm). Gopal, a renowned businessman, is their common friend. Ram…
23. The State Government of X, a state in the country is holding 48 lakh shares of Y Limited. The paid up capital of Y Limited is 9.5 crore (95 lakh…
24. “An anticipatory breach of contract is a breach of contract occurring before the time fixed for performance has arrived”. Also, discuss the effect…
25. 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.…
26. Sahil sells by auction to Rohan a horse which Sahil knows to be unsound. The horse appears to be sound, but Sahil knows about the unsoundness of the…
27. What are Inchoate and Ambiguous Instruments under the Negotiable Instruments Act, 1881?
28. What do you understand by Law? Also, elaborate the procedure for making a law.
29. Mr. Manoj was running a shop selling good quality washing machines. Mr. Vivek came to his shop and asked for washing machine which is suitable for…
30. What is the difference between partnership and co-ownership as per the Indian Partnership Act, 1932?
31. ‘Nakul’ made promissory note in favour of ‘Sahdev’ of 10,000 and delivered to him. ‘Sahdev’ indorsed the promissory note in favour of ‘Arjun’ but…
32. Utkarsh purchased some goods from Saksham for 50,000 on 14th August. Saksham drawn a bill of exchange on Utkarsh and sent to him for acceptance on…
33. Explain any four differences between Contract of Indemnity and Contract of Guarantee.
34. Whether the threat to commit suicide is coercion?
35. Explain the legal rules of auction sale relating to the following points as per provisions of the Sale of Goods Act, 1930: (A) Bid by seller with or…
36. Explain the provisions relating to the delivery of the wrong quantity of goods as per the provisions of the Sale of Goods Act, 1930.