Fundamentals of Laws and Ethics (Paper-3) CMA Foundation

SECTION A: FUNDAMENTALS OF COMMERCIAL LAWS [70 MARKS]
1. Indian Contracts Act, 1872 - 40%

• Essential elements of a contract, offer and acceptance
• Void and voidable agreements
• Consideration, legality of object and consideration
• Capacity of Parties, free consent
• Quasi-contracts, Contingent contracts
• Performance of contracts
• Discharge of contracts
• Breach of Contract and Remedies for Breach of Contract

2. Sale of Goods Act, 1930 - 20%

• Definition
• Transfer of ownership
• Conditions and Warranties
• Performance of the Contract of Sale
• Rights of Unpaid Vendor
• Auction Sales

3. Negotiable Instruments Act, 1881 - 10%

• Negotiable Instruments–Characteristics of Negotiable Instruments
• Definitions of Promissory Note, Bill of Exchange and Cheque
• Difference between Promissory Note, Bill of Exchange and Cheque
• Crossing – Meaning, Definition and Types of Crossing.

SECTION B: FUNDAMENTALS OF ETHICS [30 MARKS]
4. Ethics and Business - 30%

• Ethics – Meaning, Importance
• The “Seven Principles of Public Life” – Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership
• The relationship between Ethics and Law
• Ethics in Business