If you are preparing for the CA exam, you already know how scoring Business Law can be. When you understand the CA Foundation Business Law Important Topics clearly, the whole subject feels light. This chapter-wise guide will help you focus on the right areas, revise faster, and score higher without confusion.
Let’s go chapter by chapter.
1. Indian Contract Act – Most Important Chapter
The Indian Contract Act forms the biggest part of the paper. So you must know the CA Foundation Business Law Important Topics here very well.
1. Offer and Acceptance
This is the base of every contract. You should know:
- What is an offer
- What is acceptance
- When offer ends
- When acceptance becomes valid
- Communication rules
Questions often come from “revocation of offer” and “revocation of acceptance.” Students sometimes mix them up, so stay careful.
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2. Consideration
This means “something in return.”
Important areas include:
- Essentials of good consideration
- When consideration is not needed
- Past consideration
- Stranger to consideration
Indeed, ICAI likes asking small tricky questions from this topic.
3. Capacity to Contract
You must know who can enter a contract and who cannot.
Important parts:
- Minor
- Unsound mind
- Disqualified persons
- Effects of minor’s agreement
Moreover, “minor’s contract is void ab initio” is a favourite line to remember.
4. Free Consent
This is another high-scoring area.
You should know:
- Coercion
- Undue influence
- Fraud
- Misrepresentation
- Mistake (both types)
Questions are usually situation-based. If you understand examples, you will score well.
5. Agreements Expressly Declared Void
Learn the list:
- Agreements in restraint of trade
- Agreements in restraint of marriage
- Wagering agreements
- Uncertain agreements
Students often revise this at the last minute, but it needs proper time because the list looks easy but can confuse.
6. Quasi-Contracts
Questions often come from:
- Supply of necessities
- Payment by mistake
- Finder of goods
These look short but give sure-shot marks if you know the basics.
2. Sale of Goods Act – Easy and Scoring Chapter
The CA Foundation Business Law Important Topics also include this act because many MCQs and case-based questions appear from here.
1. Conditions and Warranties
Know the difference.
Conditions → very important to contract
Warranties → less important
Many students mix examples, so revise well.
2. Transfer of Property (Ownership Transfer)
This topic decides who owns the goods at what time.
Important points:
- Specific goods
- Unascertained goods
- Appropriation
- Delivery to carrier
Moreover, questions often test your understanding of “risk follows ownership.”
3. Unpaid Seller Rights
Very important for exam.
You must know:
- Right of lien
- Right of stoppage in transit
- Right of resale
- Rights against buyer personally
Indeed, this is one of the most tested sections in the paper.
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3. Partnership Act – Must-Study Topics
If you know the core ideas, this chapter becomes very easy.
1. Meaning and Essentials of Partnership
Important points:
- Sharing profit
- Agreement
- Mutual agency
Many questions check your understanding of “mutual agency,” so give it special time.
2. Types of Partners
Know these clearly:
- Active
- Dormant
- Nominal
- Partner by estoppel
- Minor partner
Furthermore, examples matter for this chapter.
3. Registration of Partnership Firm
ICAI often asks what happens if a firm is not registered.
Learn:
- Effects of non-registration
- Rights of partners
This is a high-probability question.
4. Rights and Duties of Partners
This looks big but is simple. Create small notes like:
- Right to take part in business
- Right to get accounts
- Duty to be honest
- Duty to share losses and profits fairly
This chapter is easy marks.
4. Limited Liability Partnership (LLP) Act
Many students ignore this chapter, but in exams, it gives quick marks.
1. Difference Between LLP and Partnership
This is one of the CA Foundation Business Law Important Topics because many questions compare the two.
Know:
- Liability
- Ownership
- Legal identity
- Perpetual succession
2. Features of LLP
Learn these:
- Body corporate
- Separate legal entity
- Limited liability
- Easy formation
- Perpetual existence
Moreover, the features help you answer MCQs easily.
3. Partners in LLP
Important concepts:
- Designated partners
- Liability of partners
- Rights of partners
If you get examples, the chapter makes more sense.
5. Companies Act – High Weightage and Easy if Basics Clear
This is another key part of CA Foundation Business Law Important Topics.
1. Definition of Company
Simple but scoring. Understand:
- Artificial person
- Separate legal entity
- Perpetual succession
- Common seal
- Limited liability
These are common exam statements.
2. Types of Companies
Often asked in MCQs. Know:
- Private company
- Public company
- Section 8 company
- OPC (One Person Company)
Indeed, this portion is straightforward and scoring.
3. Memorandum of Association (MOA)
MUST learn the clauses:
- Name
- Registered office
- Object clause
- Liability clause
- Capital clause
- Subscription clause
Questions often come from object clause because it defines what the company can do.
4. Articles of Association (AOA)
Learn:
- Its purpose
- Difference between MOA and AOA
Moreover, students often confuse the two, so practice.
5. Prospectus
Important for theory and MCQs. Know:
- What is a prospectus
- Contents
- Misstatements
- Civil and criminal liabilities
Quick Revision List
Here is a simple list to revise one day before the exam. These are your CA Foundation Business Law Important Topics at a glance:
- Offer & Acceptance
- Consideration
- Free Consent
- Capacity to Contract
- Agreements declared void
- Quasi-contracts
- Conditions & Warranties
- Unpaid seller rights
- Transfer of property
- Essentials of Partnership
- Types of Partners
- LLP features
- Difference between LLP & Partnership
- Definition of Company
- Types of Companies
- MOA clauses
- AOA meaning & differences
- Prospectus basics
This list covers 90% of exam-oriented questions.
How to Study CA Foundation Business Law Easily
Understanding the topics is not enough. Here is a simple way to study smartly.
1. Read examples
Law becomes easy when you see real situations. For example, offer and acceptance can be understood with simple daily-life examples.
2. Make tiny notes
Write only key words like “Offer ends – revocation, rejection, lapse of time.” Small notes make revision fast.
3. Practice past papers
Most questions repeat every year in some form. Moreover, it builds confidence.
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4. Learn definitions in simple words
You don’t have to memorise long lines. Just understand. Examiners want your clarity, not your memory power.
5. Revise again and again
Business Law is short but tricky. Regular revision keeps everything fresh.
You can score very high marks in this subject if you stay focused on the CA Foundation Business Law Important Topics listed above. Law is not a hard subject. It only looks big because of the language.
But when you read it in small parts, in simple words, everything becomes easy and clear. Study slowly, stay calm, and keep revising. You will surely score well.