CA Foundation · May 2026 · Paper 2
CA Foundation Business Laws May 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
| Chapter | Questions | Marks | Share |
|---|---|---|---|
| The Indian Contract Act, 1872 | 10 | 64 | 27% |
| The Companies Act, 2013 | 8 | 42 | 18% |
| The Sale of Goods Act, 1930 | 8 | 42 | 18% |
| The Indian Partnership Act, 1932 | 8 | 40 | 17% |
| The Negotiable Instruments Act, 1881 | 4 | 28 | 12% |
| The Limited Liability Partnership Act, 2008 | 2 | 12 | 5% |
| Indian Regulatory Framework | 2 | 12 | 5% |
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 7 | Formation of contract through a broker where buyer's terms differ from seller's offer; enforceability and the seller's remedies | The Indian Contract Act, 1872 |
| 1(b) | 7 | Section 8 company: outside investment, bar on dividends, licence revocation and winding up ordered by the Central Government | The Companies Act, 2013 |
| 1(c) | 6 | After dissolution: partners' right to winding up, continuing authority of partners, and mode of settling accounts | The Indian Partnership Act, 1932 |
| 2(a) | 7 | Goods delivered on approval with a fixed rejection period: when approval is deemed and the seller's recourse | The Sale of Goods Act, 1930 |
| 2(b)(i) | 3 | Distinguishing equity shares with differential rights from preference shares | The Companies Act, 2013 |
| 2(b)(ii) | 4 | Doctrine of constructive notice and its effect on outsiders dealing with a company | The Companies Act, 2013 |
| 2(c) | 6 | LLP Act: Central Government directions on undesirable or similar names, and resident designated partner requirement | The Limited Liability Partnership Act, 2008 |
| 3(a)(i) | 4 | Rights of a transferee of a partner's interest during the firm's continuance and on dissolution | The Indian Partnership Act, 1932 |
| 3(a)(ii) | 3 | Limits on a partner's implied authority to compromise a suit or acquire immovable property for the firm | The Indian Partnership Act, 1932 |
| 3(b) | 7 | Government company status of a private company, public financial institution meaning, and eligibility for dormant status | The Companies Act, 2013 |
| 3(c) | 6 | When exemplary damages are awarded, and principles distinguishing penalty from liquidated damages | The Indian Contract Act, 1872 |
| 4(a) | 7 | Contribution among co-sureties with unequal limits, and discharge of sureties by variation of terms or loss of security | The Indian Contract Act, 1872 |
| 4(b) | 7 | Negotiation by delivery versus by indorsement and delivery, and why delivery is essential | The Negotiable Instruments Act, 1881 |
| 4(c) | 6 | Explaining common law and the principles of natural justice | Indian Regulatory Framework |
| 5(a) | 7 | Implied condition of fitness for purpose and rejection rights where goods are severable | The Sale of Goods Act, 1930 |
| 5(b) | 7 | Rights and liabilities of a minor admitted to the benefits of partnership | The Indian Partnership Act, 1932 |
| 5(c) | 6 | Exceptions to the doctrine of privity of contract | The Indian Contract Act, 1872 |
| 6(a) | 7 | Validity of a promissory note to an uncertain payee, a bearer cheque, and a self-drawn self-accepted bill | The Negotiable Instruments Act, 1881 |
| 6(b) | 6 | Rights of a finder of lost goods and rights of a pawnee | The Indian Contract Act, 1872 |
| 6(b) OR | 6 | Remedies available to a party defrauded, and modes of termination of bailment | The Indian Contract Act, 1872 |
| 6(c)(i) | 4 | Seller's reservation of right of disposal despite delivery, and when such reservation is presumed | The Sale of Goods Act, 1930 |
| 6(c)(ii) | 3 | Price fixed by third-party valuation and consequences if the valuer fails to value | The Sale of Goods Act, 1930 |
What stood out
- The Indian Contract Act, 1872 led with about 32 of 120 marks across five sub-questions, covering broker dealings, guarantee, damages, privity and bailment.
- Companies Act, Sale of Goods Act and Partnership Act were almost evenly balanced at around 20 marks each, so broad rather than selective preparation paid off.
- Case-based questions dominated the 7-mark slots, with applied scenarios on Section 8 companies, government and dormant companies, and fitness for purpose.
- LLP Act and Indian Regulatory Framework were each limited to a single 6-mark theory question, consistent with their lighter syllabus weight.
- Negotiable Instruments featured twice, once on modes of negotiation and once on validity of instruments, for 14 marks in all.
Practise the chapters that carried the marks
The Indian Contract Act, 1872, The Companies Act, 2013, The Sale of Goods Act, 1930: study guides and practice questions in the CA Foundation format.