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CA FOUNDATION ANTIM TEST SERIES
PAPER 2: BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING
Time: 3hr Date: 22.12.2023 Maximum Marks: 100
SECTION A: BUSINESS LAWS
Question No. 1 is compulsory.
Answer any four questions from the remaining five questions.
Q1.(a)1 Mr. Ramesh promised to pay Rs. 50,000 to his wife Mrs. Lali so that she can spend the
sumon her 30th birthday. Mrs. Lali insisted her husband to make a written agreement if he really
loved her. Mr. Ramesh made a written agreement and the agreement was registered under the
law. Mr. Ramesh failed to pay the specified amount to his wife Mrs. Lali. Mrs. Lali wants to file a suit
against Mr. Ramesh and recover the promised amount. Referring to the applicable provisions of
the Contract Act, 1872, advise whether Mrs. Lali will succeed. (4 Marks)
(b) The paid-up capital of Ram Private Limited is Rs 10 Crores in the form of 7,00,000 Equity shares
of Rs 100 each and 3,00,000 Preference Shares of Rs 100 each. Lakhan Private Limited is holding
3,00,000 Equity Shares and 3,00,000 Preference Shares in Ram Private Limited. State with reason,
Whether Ram Private Limited is Subsidiary of Lakhan Private Limited? (4 Marks)
(c) Differentiate between Ascertained and Unascertained Goods with example. (4 Marks)
Q2.(a) Define an offer. Explain the essentials of a valid offer. How an offer is different from an
invitation to offer? (7 Marks)
(b) Discuss the conditions under which LLP will be liable and not liable for the acts of the partner
(5 Marks)
Q3. (a) P, Q and R are partners in a partnership firm. R retires from the firm without giving public
notice. P approached S, an electronic appliances trader, for purchase of 25 fans for his firm. P
introduced E, an employee of the firm, as his partner to S. S believing E and R as partners supplied
25 fans to the firm on credit. S did not receive the payment for the fans even after the expiry of the
credit period. Advise S, from whom he can recover the payment as per the provisions of the Indian
Partnership Act, 1932. (6 Marks)
CA Foundation December 2023 Mock Test Series at https://commerceaim.vercel.app
, Telegram Channel
(b) Kapil went to a departmental store to purchase a steel pan. He asked the salesman about the
area in departmental store where steel pans are kept. The salesman indicated him the area with
instructions that with steel pans, other metal's pans were also kept. Kapil wrongfully picked an
aluminum pan in place of steel pan. The salesman watched but said nothing to Kapil. Kapil reached
his house and found that pan was not a steel pan but actually an aluminium pan. Kapil filed a suit
against departmental store for fraud. Discuss, whether Kapil was eligible to file suit for fraud
against departmental store under Indian Contract Act, 1872? (6 Marks)
Q4.(a) “There is no implied warranty or condition as to quality or fitness for any Particular purpose
of goods supplied under a contract of sale.” Discuss the significance and State exceptions, if any.
(6 Marks)
(b) Master X was introduced to the benefits of partnership of M/s ABC & Co. with the consent of
all partners. After attaining majority, more than six months elapsed and he failed to give a public
notice as to whether he elected to become or not to become a partner in the firm. Later on, Mr. L,
a supplier of material to M/s ABC & Co., filed a suit against M/s ABC & Co. for recovery of the debt
due.
In the light of the Indian Partnership Act, 1932, explain:
(i) To what extent X will be liable if he failed to give public notice after attaining majority?
(ii) Can Mr. L recover his debt from X? (6 Marks)
Q.5 (a) Describe in brief the rights of the buyer against the seller in case of breach of contract of
Sale under Sale of Goods Act, 1930. (6 Marks)
(b)8 A company registered under section 8 of the Companies Act, 2013, earned huge profit during
the financial year ended on 31st March, 2018 due to some favorable policies declared by the
Government of India and implemented by the company. Considering the development, some
members of the company wanted the company to distribute dividends to the members of the
company. They approached you to advise them about the maximum amount of dividend that can
be declared by the company as per the provisions of the Companies Act, 2013. Examine the
relevant provisions of the Companies Act, 2013 and advise the members accordingly.
(6 Marks)
CA Foundation December 2023 Mock Test Series at https://commerceaim.vercel.app
CA FOUNDATION ANTIM TEST SERIES
PAPER 2: BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING
Time: 3hr Date: 22.12.2023 Maximum Marks: 100
SECTION A: BUSINESS LAWS
Question No. 1 is compulsory.
Answer any four questions from the remaining five questions.
Q1.(a)1 Mr. Ramesh promised to pay Rs. 50,000 to his wife Mrs. Lali so that she can spend the
sumon her 30th birthday. Mrs. Lali insisted her husband to make a written agreement if he really
loved her. Mr. Ramesh made a written agreement and the agreement was registered under the
law. Mr. Ramesh failed to pay the specified amount to his wife Mrs. Lali. Mrs. Lali wants to file a suit
against Mr. Ramesh and recover the promised amount. Referring to the applicable provisions of
the Contract Act, 1872, advise whether Mrs. Lali will succeed. (4 Marks)
(b) The paid-up capital of Ram Private Limited is Rs 10 Crores in the form of 7,00,000 Equity shares
of Rs 100 each and 3,00,000 Preference Shares of Rs 100 each. Lakhan Private Limited is holding
3,00,000 Equity Shares and 3,00,000 Preference Shares in Ram Private Limited. State with reason,
Whether Ram Private Limited is Subsidiary of Lakhan Private Limited? (4 Marks)
(c) Differentiate between Ascertained and Unascertained Goods with example. (4 Marks)
Q2.(a) Define an offer. Explain the essentials of a valid offer. How an offer is different from an
invitation to offer? (7 Marks)
(b) Discuss the conditions under which LLP will be liable and not liable for the acts of the partner
(5 Marks)
Q3. (a) P, Q and R are partners in a partnership firm. R retires from the firm without giving public
notice. P approached S, an electronic appliances trader, for purchase of 25 fans for his firm. P
introduced E, an employee of the firm, as his partner to S. S believing E and R as partners supplied
25 fans to the firm on credit. S did not receive the payment for the fans even after the expiry of the
credit period. Advise S, from whom he can recover the payment as per the provisions of the Indian
Partnership Act, 1932. (6 Marks)
CA Foundation December 2023 Mock Test Series at https://commerceaim.vercel.app
, Telegram Channel
(b) Kapil went to a departmental store to purchase a steel pan. He asked the salesman about the
area in departmental store where steel pans are kept. The salesman indicated him the area with
instructions that with steel pans, other metal's pans were also kept. Kapil wrongfully picked an
aluminum pan in place of steel pan. The salesman watched but said nothing to Kapil. Kapil reached
his house and found that pan was not a steel pan but actually an aluminium pan. Kapil filed a suit
against departmental store for fraud. Discuss, whether Kapil was eligible to file suit for fraud
against departmental store under Indian Contract Act, 1872? (6 Marks)
Q4.(a) “There is no implied warranty or condition as to quality or fitness for any Particular purpose
of goods supplied under a contract of sale.” Discuss the significance and State exceptions, if any.
(6 Marks)
(b) Master X was introduced to the benefits of partnership of M/s ABC & Co. with the consent of
all partners. After attaining majority, more than six months elapsed and he failed to give a public
notice as to whether he elected to become or not to become a partner in the firm. Later on, Mr. L,
a supplier of material to M/s ABC & Co., filed a suit against M/s ABC & Co. for recovery of the debt
due.
In the light of the Indian Partnership Act, 1932, explain:
(i) To what extent X will be liable if he failed to give public notice after attaining majority?
(ii) Can Mr. L recover his debt from X? (6 Marks)
Q.5 (a) Describe in brief the rights of the buyer against the seller in case of breach of contract of
Sale under Sale of Goods Act, 1930. (6 Marks)
(b)8 A company registered under section 8 of the Companies Act, 2013, earned huge profit during
the financial year ended on 31st March, 2018 due to some favorable policies declared by the
Government of India and implemented by the company. Considering the development, some
members of the company wanted the company to distribute dividends to the members of the
company. They approached you to advise them about the maximum amount of dividend that can
be declared by the company as per the provisions of the Companies Act, 2013. Examine the
relevant provisions of the Companies Act, 2013 and advise the members accordingly.
(6 Marks)
CA Foundation December 2023 Mock Test Series at https://commerceaim.vercel.app
