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

PAPER – three : LAW, ETHICS AND COMMUNICATION

QUESTIONS

BUSINESS LAWS

The Indian Contract Act, 1872

1. Briefly discuss the grounds upon which a contract may be discharged under the
provisions of Indian Contract Act, 1872.
2. A promised to pay B for his services at his (A) sole discretion which obtained to be fair and
reasonable. However, B dissatisfied with the payment made by A and wanted to sue
him. Decide whether B can sue A under the provisions of Indian Contract Act, 1872?
3. describe an offer. discuss the rules of an offer. How an offer is various from an invitation
to offer.
4. discuss the concept of ‘misrepresentation’ in matters of contract. Ajay induced Anil to buy
his car saying that it was in a very good condition. After taking the car, Anil complained
that there were many defects in the car. Ajay proposed to get it repaired and promised to
pay 50% cost of repairs. After a few days, the car did not work at all. Now Anil wants to
rescind the contract. Decide giving reasons.
5. X advances to Y Rs.10,000 on the guarantee of Z. The loan carries interest at ten
percent per annum. Subsequently, Y becomes financially embarrassed. On Y’s request,
X decreases the interest to 6 per cent per annum and does not sue Y for 1 year after
the loan becomes due. Y becomes insolvent. Can X sue Z?

The Negotiable Instruments Act, 1881

6. A bill of exchange is dishonoured by the acceptor. discuss the provisions of “Noting” and
“Protest” under the Negotiable Instruments Act, 1881.
7. A promoter who has borrowed a loan on behalf of company, who is neither a director nor
a person-in-charge, sent a cheque from the companies account to discharge its legal
liability. Subsequently the cheque was dishonoured and the compliant was lodged
against him. Does he liable for an offence under part 138?
8. P owes money to Q. Therefore, he makes a promissory note for the amount in favour of
Q, for safety of transmission he cuts the note in half and posts 1 half to Q. He then
modifications his mind and calls upon Q to return the half of the note which he had sent. Q
requires P to send the other half of the promissory note. Decide how a rights of the
parties are to be adjusted.
9. State by and to whom, a notice of dishonour of a negotiable instrument should be provided
and also state the mode to be followed for giving such notice under the provisions of the
Negotiable Instruments Act, 1881.

The Payment of Bonus Act, 1965\

10. discuss the provisions relating to appointment, powers and functions of an Inspector
under the Payment of Bonus Act, 1965?
11. Star Ltd. suffered heavy losses during the current accounting year and hence was not

Earning:   Approval pending.