Institute of Chartered Financial Analysts of India (ICFAI) University 2008 C.A Accounts -PCC--08_ – 3 LAW, ETHICS AND COMMUNITION.doc - Question Paper

PAPER – three : LAW, ETHICS AND COMMUNICATION

PART - I

Question Nos. one and two are compulsory.
Attempt any 8 ques. from rest
ques. 1

(a) A provide to C a continuing guarantee to the extent of Rs. 5000 for the vegetables to be
supplied by C to B from time to time on credit. Afterwards, B became embarrassed, and
without the knowledge of A, B and C contract that C shall continue on to supply B with
vegetables for ready money, and that the payments shall be applied to the then existing
debts ranging from B and C.
Examining the provision of the Indian Contract Act, 1872, decide whether A is liable on
his guarantee provided to C. (5 Marks)
(b) State with reasons whether the subsequent statements are accurate or incorrect:
(i) In case of option promise 1 branch of which is legal and the other illegal, the
whole contract can not be performed.
(ii) The contract of Insurance is not fully covered under the contract of Indemnity.
(2×1=2 Marks)
(c) Pick-up the accurate ans from the subsequent and provide reasons:
(i) When a person without expressing his final willingness proposes certain terms on
which he is willing to negotiate he makes:
1. Counter offer
2. Standing offer
3. Offer
4. Invitation to an offer.
(ii) The principle that no 1 shall be allowed to enrich himself at the expense of
a different is known as:
1. Quantum Meruit
2. Nudem Pactum
3. Quasi-contract
4. None of these.
(iii) A negotiable instrument that is payable to order can be transferred by:
1. Simple delivery
2. Endorsement and delivery
3. Endorsement
4. Registered Post (3×1=3 Marks)

ques. 2
(a) STD Ltd. convened its Board of Directors meeting on first August, 2008. During the course
of the meeting the date for calling annual general meeting was explained but no decision
could be taken on it in the meeting. However, the Secretary of the company issued the
notice for calling the annual general meeting of the shareholders without taking any
authorization from the Board of Directors.
State who is the proper authority to problem the notice for calling the annual general
meeting and to whom such notice is to be provided. (5 Marks)

(b) State whether the subsequent statements are actual of False and provide reasons:
(i) An ultra-vires transaction will not affect the right of a Company to acquire property.
(ii) Reserve Capital of a Public Company may be called at any time. (2×1=2 Marks)

(c) Pick-up the accurate ans from the subsequent and provide reasons:
(i) If a company does not receive the minimum subscription, it should refund all money

Earning:   Approval pending.