CMA Foundation Fundamentals of Laws and Ethics

Section A: Fundamentals of Commercial Laws (70%)

1. Indian Contracts Act, 1872

• Essential elements of a contract, offer and acceptance

• Void and voidable agreements

• Consideration, the legality of object and consideration

• The capacity of Parties, free consent

• Quasi-contracts, Contingent contracts

• Performance of contracts

• Discharge of contracts

• Breach of Contract and its Remedies

40%

2. Sale of Goods Act, 1930

• Definition

• Transfer of ownership

• Conditions and Warranties

• Performance of the Contract of Sale

• Rights of Unpaid Vendor

• Auction Sales

20%

3. Negotiable Instruments Act,1881

• 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.

10%

Section B: Fundamentals of Ethics (30%)

4. Ethics and Business

• Ethics

• The “Seven Principles of Public Life”

• The relationship between Ethics and Law

• Ethics in Business

30%