CA Foundation · Business Laws
Important Sections You Must Memorize
A chapter-wise list of the sections examiners keep coming back to — organised exactly the way ICAI’s May 2026 study material is structured, with a priority tag on each so you know where to spend your last few days.
A · Must know cold
B · Know well
C · Read once
⚡ How to use this page
Tap a chapter to expand it. Section numbers in Category A are the ones that show up as direct “state the provision under Section ___” questions almost every attempt — memorize the number and the one-line rule, not the full legal language.
Chapter 2 · The Indian Contract Act, 1872 ▾
Unit 1–2 · Nature of Contract & Consideration
| Section | Provision | Priority |
|---|
| Sec 2 | Definitions — offer, acceptance, consideration, agreement, contract, void/voidable | A |
| Sec 10 | What agreements are contracts | A |
| Sec 25 | Agreement without consideration — exceptions | A |
Unit 3 · Other Essential Elements
| Section | Provision | Priority |
|---|
| Sec 11 | Who is competent to contract | A |
| Sec 23 | What considerations/objects are lawful and unlawful | A |
| Sec 24–30 | Agreements void — restraint of marriage, trade, legal proceedings, wagering | B |
Unit 4–5 · Performance & Breach
| Section | Provision | Priority |
|---|
| Sec 56 | Agreement to do impossible act — doctrine of frustration | A |
| Sec 62–67 | Novation, rescission, alteration, remission of performance | B |
| Sec 73–75 | Compensation for loss/damage caused by breach | A |
Unit 6–9 · Contingent/Quasi Contracts, Indemnity, Guarantee, Bailment, Pledge, Agency
| Section | Provision | Priority |
|---|
| Sec 124–125 | Contract of indemnity — rights of indemnity holder | B |
| Sec 126–147 | Contract of guarantee — surety’s rights, discharge of surety | A |
| Sec 148–171 | Bailment and pledge — duties, rights, pawnee’s rights | B |
| Sec 182–238 | Agency — creation, sub-agent, revocation of authority | B |
Chapter 3 · The Sale of Goods Act, 1930 ▾
| Section | Provision | Priority |
|---|
| Sec 4 | Sale and agreement to sell | A |
| Sec 11 | Stipulations as to time | C |
| Sec 12 | Condition vs warranty | A |
| Sec 14–17 | Implied conditions/warranties — title, description, sample, merchantability | A |
| Sec 18–25 | Transfer of property, sale by a person not the owner | B |
| Sec 39 | Delivery of goods — modes | C |
| Sec 46 | Rights of an unpaid seller | A |
Chapter 4 · The Indian Partnership Act, 1932 ▾
| Section | Provision | Priority |
|---|
| Sec 4 | Definition of partnership | A |
| Sec 5 | Partnership not created by status | C |
| Sec 6 | Mode of determining existence of partnership | B |
| Sec 18–30 | Relations of partners — including minor admitted to benefits | A |
| Sec 31–38 | Introduction, retirement, expulsion, insolvency of a partner | B |
| Sec 39–44 | Dissolution of a firm | B |
| Sec 69 | Effect of non-registration of a firm | A |
Chapter 5 · The LLP Act, 2008 ▾
| Section | Provision | Priority |
|---|
| Sec 3 | LLP is a body corporate, separate from its partners | A |
| Sec 6 | Minimum number of partners | C |
| Sec 26 | Partner as agent of the LLP, not other partners | B |
Chapter 6 · The Companies Act, 2013 ▾
| Section | Provision | Priority |
|---|
| Sec 2(20) | Definition of “company” | A |
| Sec 2(68), 2(71) | Private company and public company | A |
| Sec 3 | Formation of a company | B |
| Sec 12 | Registered office of company | C |
⚠️ Scope note
At Foundation level, the Companies Act chapter covers only basic concepts (definition, features, kinds of companies) — detailed sections come back in Inter Law, so don’t over-invest time here.
Chapter 7 · The Negotiable Instruments Act, 1881 ▾
| Section | Provision | Priority |
|---|
| Sec 13 | Definition of a negotiable instrument | A |
| Sec 18–20 | Inchoate instruments, ambiguous instruments | C |
| Sec 118 | Presumptions as to negotiable instruments | B |
| Sec 138 | Dishonour of cheque for insufficiency of funds — penal liability | A |
🎯 Revision tip
Section numbers alone rarely fetch marks — pair each Category A section with one case-study line from the module so you can apply it, not just recite it. That’s exactly what gets tested across each of our four planned revisions before the cycle and full-syllabus tests.
If you’d rather not build this section-recall habit on your own, our CA Foundation test planner is built around it — each of the four revisions in the cycle brings these sections back at the right spacing so they actually stick by exam day.
Explore the Test Planner →
