CMA Foundation · Fundamentals of Business Laws and Business Communication
Primary and Subordinate Legislation for CMA Foundation Paper 1
Primary legislation is law made directly by Parliament or a State Legislature, called an Act or statute. Subordinate (delegated) legislation is made by an authority, such as the government, under power given by an Act. Courts can strike it down if it exceeds that power. In MCQs, identify who made the law and under which power.
What this chapter covers
This chapter explains where law comes from and who is allowed to make it. You start with the meaning and sources of law, such as the Constitution, statutes, customs, judicial decisions and delegated rules. Then you study the two main kinds of written law: Acts passed by a legislature, and rules, regulations, bye-laws and orders made under an Act.
The chapter ends by comparing the two kinds and by looking at how courts keep delegated law in check. A law made under delegation must stay within the power the parent Act gives. If it goes beyond that power, a court can declare it invalid.
This chapter is the base for the rest of Paper 1. Later Acts, such as the Indian Contract Act, the Sale of Goods Act and the Companies Act, are all primary legislation. Each of them has rules made under it. When you know how law is made, those Acts become easier to place and remember.
Questions from this chapter are usually direct and definition based, so they are among the easiest marks in Paper 1 if your concepts are clear. The chapter is short and needs little calculation. A few hours of careful study can help you answer quickly and spend the saved time on harder questions elsewhere. Since there is no negative marking, clear concepts also let you attempt every question with confidence instead of guessing blindly.
Primary and Subordinate Legislation: topics in the order to study them
- 1Meaning and Sources of LawStart here because it gives you the vocabulary of law and shows where Acts and delegated rules fit among all sources.
- 2Primary Legislation: Acts and StatutesNext, learn the main form of law made directly by a legislature, since delegated law depends on it.
- 3Subordinate (Delegated) LegislationStudy this after Acts, because delegated law only exists under power given by a parent Act.
- 4Primary vs Subordinate Legislation and Judicial ControlFinish with the comparison and court control, which pulls the earlier topics together and is a favourite for MCQs.
How to prepare Primary and Subordinate Legislation
This is a concept chapter, so aim to understand the logic of who makes law and who checks it. Then practise MCQs to fix the terms.
- Read the topics in the study order once, and write one line in your own words for each key term: law, statute, rule, regulation, bye-law, order.
- Make a simple chain on one page: Constitution, then Act, then rules or regulations under the Act. Note who makes each level.
- For each type of law, note three things: who makes it, under what authority, and one example from business, such as rules under the Companies Act.
- Learn why delegation exists: Parliament lacks time and technical detail, so it lets the executive fill in details within limits.
- Build a comparison table on paper covering source of power, who makes it, scope, and court control. Revise it daily.
- Solve MCQs by first asking who made the law and whether it stays within the power of its parent Act. Use this to eliminate wrong options fast.
- Revise the quick points a day before the exam and attempt every question, since wrong answers carry no penalty.
Common mistakes in Primary and Subordinate Legislation
Treating rules and regulations as primary legislation
Fix: Check the maker. If it is not a legislature passing a bill, and it works under an Act, it is subordinate legislation.
Thinking delegated law cannot be questioned
Fix: Remember that courts can strike down delegated law that goes beyond the parent Act or conflicts with the Constitution.
Mixing up the enabling Act with the delegated rules
Fix: Label the Act as the source of power and the rules as the product made under that power.
Ignoring the sources of law topic as too basic
Fix: Learn the list of sources and one line on each. Easy MCQs often come from here.
Learning definitions word for word without understanding
Fix: Understand the idea behind each term and test yourself with application-style questions.
Last-day revision: Primary and Subordinate Legislation
- Law is a set of rules of conduct enforced by the State.
- Main sources of law include the Constitution, statutes, delegated legislation, customs and judicial decisions.
- Primary legislation means Acts passed directly by Parliament or a State Legislature.
- An Act is also called a statute.
- Subordinate legislation is made by an authority under power given by an Act.
- Delegated legislation appears as rules, regulations, bye-laws, orders and notifications.
- The Act that gives the power is called the parent or enabling Act.
- Delegated law must stay within the limits of its parent Act.
- Delegated law that exceeds those limits can be declared invalid by courts.
- Primary legislation can be challenged only for lack of competence or violation of the Constitution.
- Delegation saves legislative time and allows flexible, technical detail.
- In MCQs, ask who made the law and under what power.
Primary and Subordinate Legislation practice questions
- An Act empowers a Board to make regulations on listing norms. The Board frames a regulation that is within its power, but the regulation was…
- Which of the following is treated as a written source of law in India, as distinct from custom or precedent?
- Parliament passes an Act that lays down the policy for regulating a trade but leaves the detailed procedure to be filled in by the Central G…
- A State Act lets the State Government make rules on 'matters necessary for implementing the Act'. The Government issues a rule that gives it…
- Which of the following is the usual feature that distinguishes subordinate legislation from primary legislation in India?
- Which of the following is an example of subordinate legislation?
- Which of the following best describes why subordinate legislation is considered necessary in a modern State?
- The Sale of Goods Act, 1930 contains a section that says the Central Government may make rules to carry out the purposes of the Act. Rules m…
Primary and Subordinate Legislation in other exams
The same ground in other exams, if you are preparing for more than one or want another angle on it.
Primary and Subordinate Legislation: frequently asked questions
What is the difference between primary and subordinate legislation?
Primary legislation is an Act passed directly by Parliament or a State Legislature. Subordinate legislation is made by another authority under power given by an Act. It must stay within that power.
Is subordinate legislation the same as delegated legislation?
Yes. The two terms mean the same thing. Both describe rules, regulations, bye-laws or orders made under authority given by an Act.
Can courts cancel delegated legislation?
Yes. If delegated law goes beyond the power given by the parent Act, or conflicts with the Constitution, a court can declare it invalid.
How much time should I give this chapter?
It is a short concept chapter, so a few focused study sessions are usually enough. Spend extra time on MCQ practice, especially on the comparison between primary and subordinate legislation.