Professional Documents
Culture Documents
Law and Eng Revision
Law and Eng Revision
Revision
Foundation Course Paper-2:
Business Laws & Business
Correspondence and Reporting
A compendium of subject-wise capsules published in the
monthly journal “The Chartered Accountant Student”
Board of Studies
(Academic)
ICAI
INDEX
Edition of
Paper Page
Subject Students’ Topics
No. No.
Journal
Concepts related to
July 2020, entering of contract under
1-9
August 2020 The Indian Contract Act,
1872
Concepts related to
2A Business Laws January
performance and breach of
10-14 contract and special
2021
contract under The Indian
Contract Act, 1872
The Sale of Goods Act,
15-20 July 2021
1930
Business
September
2B Correspondence 21-26
2021
General Overview
and Reporting
BUSINESS LAWS
Paper 2(SECTION A): Business Laws
This capsule on Paper 2-Section A: Business Laws at Foundation, have been dealt with important concepts related to the
formation of the valid contract under the Indian Contract Act, 1872. In this capsule, we have touched upon significant
concepts that are required for making valid contract and the related concepts supported with relevant case laws to have
conceptual understanding of the subject. This chapter is important from examination perspective as its form base for the
understanding of the nature of the contract which constitutes unit 1 of Chapter 1 of the said paper in the Foundation course.
Considering this capsule as summarised version of the unit 1 of chapter 1 will certainly benefit the students to recapitulate
the important points while studying the subject.
Essentials of valid
Offer/proposal
Since section 10 is not complete and exhaustive, so there are certain Omission/Abstinence
others sections which also contains requirements for an agreement
to be enforceable.
Not given by Section 10 but are also considered essentials (4) Classification of Offer
of valid contracts
• Two parties
• Intention to create legal relationship Counter Standing
• Fulfillment of legal formalities General Offer Offer
• Certainty of meaning Offer
• Possibility of performance
Cross
Specific Offer
(1) Meaning of offer/proposal
Offer
As offer is the starting point in the making of an agreement. An offer
is also called as proposal. Thus, for a valid offer, the party making it
must express his willingness 'to do' or 'not to do' something.
1
BUSINESS LAWS
General offer Name of the Facts of the case Decision
offer made to public at large and anyone can accept by performing case laws
the desired act
When he came to know
Special/specific offer of the reward, which
had been announced in
offer made to a specific / ascertained person, & can be accepted his absence, he brought
only by that specified person an action against the
Cross offer defendant to claim this
reward. It was held that
2 parties exchange identical offers in ignorance of each other's since the plaintiff was
offer at the same time. It is not binding ignorant of the offer of
reward, his act of bringing
Counter offer
the lost boy did not
offeree offers to qualified acceptance of the offer subject to amount to the acceptance
modifications and variations in the terms of original offer. Counter- of the offer and therefore
offer amounts to rejection of the original offer he was not entitled to
claim the reward.
Standing / continuing / open offer
An offer of continuous nature which remains open for acceptance Boulton Vs. Boulton had taken Held: Jones is not liable
over a period of time Jones over the business of to pay for the good. It is
one Brocklehurst,
a rule of law that offer
with whom Jones had
Important case laws previous dealings. made to a specific /
Jones sent an order for ascertained person can
Name of the Facts of the case Decision
goods to Brocklehurst, be accepted only by that
case laws
which Boulton supplied specified person.
Carlill Vs. In this famous case, Held, she could recover without informing
Carbolic Carbolic smoke Ball Co. the amount as by using Jones that the business
Smoke Ball advertised in several the smoke balls she had changed hands.
Co. newspapers that a had accepted the offer. When Jones found
reward of £100 would be In terms of Sec. 8 of the out that the goods
given to any person who Indian Contract Act, had not come from
contracted influenza anyone performing the Brocklehurst, he
after using the smoke conditions of the offer refused to pay for
balls produced by the can be considered to them and was sued by
Carbolic Smoke Ball have accepted the offer. Boulton for the price.
Company according Until the general offer is
to printed directions. retracted or withdrawn, (5) Difference between Offer and Invitation to Offer, and
One lady, Mrs. Carlill, it can be accepted by Invitation to Treat
used the smoke balls anyone at any time as it is
as per the directions of a continuing offer. Case laws Facts of the case Decision
company and even then Harvey Vs. In this case, Privy Council Held that the mere
suffered from influenza. Facie briefly explained the statement of the lowest
Lalman Gauri Dutt sent his Held, he was not entitled distinction between an price at which the vendor
Shukla Vs. servant Lalman to trace to the reward, as he offer and an invitation to would sell contained no
Gauri Dutt his missing nephew. He did not know the offer. offer. In the given case, implied contract to sell
then announced that Section 4 of the Indian the plaintiffs through to the person who had
anybody who traced Contract Act states that a telegram asked the enquired about the price.
his nephew would be the communication of defendants two questions
entitled to a certain a proposal is complete namely,
reward. Lalman traced when it comes to the (i) Will you sell us
the boy in ignorance knowledge of the person Bumper Hall Pen? and
of this announcement. to whom it is made. (ii) Telegraph lowest cash
Subsequently when he price.
In Lalman case, the The defendants replied
came to know of the defendant’s nephew
reward, he claimed it. through telegram that the
absconded from home. “lowest price for Bumper
The plaintiff who was Hall Pen is ₤900”. The
defendant’s servant was plaintiffs sent another
sent to search for the telegram stating “we agree
missing boy.
to buy Bumper Hall Pen
After the plaintiff had left at ₤900”. However, the
in search of the boy, the defendants refused to sell
defendant announced the property at the price.
a reward of Rs. 501 to The plaintiffs sued the
anyone who might find defendants contending that
out the boy. The plaintiff they had made an offer to
who was unaware of this sell the property at ₤900
reward, was successful in and therefore they are
searching the boy. bound by the offer.
No term of the non compliance amounting to Acceptance Neale Vs. M offered to sell his land It was held that N
Merret to N for £280. N replied could not enforce his
(7) Acceptance purporting to accept the acceptance because it
offer but enclosed a cheque was not an unqualified
for £ 80 only. He promised one
to pay the balance of £ 200
person to whom Signifies his Proposal is said by monthly installments of
the Proposal is Assent thereto to be Accepted £ 50 each.
made
3
BUSINESS LAWS
Case laws Facts Decision (12) When is communication of acceptance complete?
Brogden vs. Brogden a supplier, sent a Held, that there was As against the Proposer-
Metropolitan draft agreement relating no contract as the
to the supply of coal to the when put in course of transmission to the Proposer
manager had not
Railway Co. manager of railway Co. viz, communicated his As against the Acceptor
Metropolitian railway for acceptance to the
his acceptance. when it comes to the knowledge of the Proposer
The manager wrote the supplier, Brogden.
word “Approved” on the (13) Communication of acceptance by post
same and put the draft
agreement in the drawer As against the Proposer- As against the Acceptor
of the table
Intending to send it to when the letter of when the letter reaches the
the company’s solicitors acceptance is posted proposer
for a formal contract to
be drawn up. By an over
sight the draft agreement (14) Acceptance over telephone or telex or fax
remained in drawer.
Offer is made by instantaneous communication-
(10) Rules for Communication of Offer and Acceptance Contract is completed
For Valid Offer and Acceptance When the Acceptance is The Contract is made at the
• Offer must be communicated to the Offeree received by the Offeror, place where the Acceptance is
• Acceptance must be communicated to the received
Offeror
(15) When revocation of offer and acceptance is complete
(11)When communication of offer is complete?
comes to the knowledge of as against the person • when it is put into a
the person to whom it is made who makes it- course of transmission
Communication as against the person • when it comes to his
of an offer is either by words spoken or to whom it is made- knowledge.
complete written, or it may be inferred
from the conduct of the
parties (16) When a Proposal and Acceptance can be revoked?
Relevant Case laws
Proposal Acceptance
Case laws Facts Decision
may be revoked at may be revoked at
Lilly Plaintiff delivered Held, the terms were any time before the any time before the
White Vs. some clothes to unreasonable and communication of its communication of the
Mannuswamy drycleaner for which Plaintiff was entitled acceptance is complete acceptance is complete
she received a laundry to recover full value as against the proposer as against the acceptor
of the saree from the
receipt containing drycleaner.
a condition that in
case of loss, customer The receipt carries
would be entitled special conditions (17)Modes of revocation of offer by
to claim 15% of the and are to be treated
market price of value as having been duly
communicated to the Lapse of Death or Non
of the article, Plaintiff customer and therein a Notice of specified Insanity fulfilment Counter
lost her new saree. tacit acceptance of these Revoca- or of the of Offer
conditions is implied tion reason- Conditions
by the customer’s parties
able time of Offer
acceptance of the receipt
has done or promises to do (4) Suit by a Third Party on an Agreement (Doctrine of Privity
abstained from does or abstains or abstain from
from doing, or of Contract)
doing, or doing something,
General rule
Such an Act or Abstinence or Promise is called A stranger to a contract cannot sue
Consideration for the Promise
(2) Law relating to Minor’s agreement/ Position of minor (5) Positions of agreements in case of persons of permanently
unsound mind (in case of Idiots)
In case of supply of
No ratification necessaries claim to
on attaining be reimbursed from (6) Positions of agreements in case of Drunken/Intoxicated
majority property of minor person
6
BUSINESS LAWS
(7) Persons disqualified by law (6) Effect of undue influence
contracts by such person are Void. when agreement caused by undue influence-
• contract is voidable at the option of the party
- Alien enemies whose consent was obtained
Statutes • contract may be set aside
disqualify - Foreign ambassadors
certain persons - Convicts
to enter into - Insolvents Relevant Case Law
contract
- Corporations In Kirpa Ram vs. Sami-Ud-din Ad. Khan, a youth of 18 years of
- Etc. age, spend thrift and a drunkard, borrowed Rs. 90,000 on a bond
bearing compound interest at 2% per mensem (p.m.). It was held
by the court that the transaction is unconscionable, the rate of
III. Free Consent interest charged being so exorbitant.
Undue
Influence
Misrepresentation
Fraud can be
committed by- { •
•
•
a party to a contract, or
with his connivance or
by his agent
Consent is said
{
Coercion to be free Mistake • another party thereto or
when it is not Act when done
• his agent, or
caused by with intent
• to induce him to enter
to deceive-
into the contract
8
BUSINESS LAWS
(19) Differences IV. Legality of Object and Consideration
Coercion and Undue influence (1) When there is an unlawful object & unlawful consideration
in an agreement, its effect
Basis of difference Coercion Undue Influence
Nature of action It involves the It involves moral or Consideration or Object of an agreement is unlawful, if-
physical force or mental pressure. forbidden defeats If it is involves immoral
threat. by law provision fraudulent or implies or
Involvement of It involves No such illegal act of any law injury to a opposed
criminal action committing or is committed or a person or to public
threatening to threat is given. property policy
commit any act of another
forbidden by The The The The The
Indian Penal Code Agreement agreement agreement agreement agreement
or detaining or is Void. is void. is void. is void is void.
threatening to detain
property unlawfully. (2) Agreements against Public policy
R e l a t i o n s h i p It is not necessary Some sort of
between parties that there must relationship between Interfering with
Trading with the Course of Brokerage
be some sort the parties is
Enemy Justice Contracts
of relationship absolutely necessary.
between the parties.
Exercised by Coercion need not Undue influence Restraint
whom proceed from the is always exercised Stifling Creating of Legal
promisor nor need it between parties to Prosecution Monopoly Proceedings
be directed against the contract.
the promisor. It
Maintenance Sale/Transfer of
can be used even Restraint of
and Public Offices
by a stranger to the Champerty and Titles. Trade
contract.
Enforceability The contract is Where the consent
voidable at the is induced by undue Restraint Restrained
of Personal of Parental Restraint of
option of the party influence, the Marriage
Liberty Rights
whose consent has contract is either
been obtained by voidable or the
V. Agreements which are expressly declared void
the coercion. court may set aside
or enforce it in a
(1) Law declares following agreement to be either illegal or void
modified form.
Fraud and misrepresentation Agreements by Agreements in Agreements, the
Incompetent Restraint of Legal Meaning of which
Basis of difference Fraud Misrepresentation Parties Proceeding is not Certain
Intention To deceive the other There is no such
party by hiding the intention to deceive Reciprocal
truth. the other party. Agreements made Agreements
Promises to do
under a Mutual in Restraint of
Knowledge of The person making The person making things Legal
Mistake of Fact Trade and also Illegal
truth the suggestion the statement
believes that the believes it to be
statement is untrue. true, although it is Agreements, the Agreements Agreements
not true. Consideration or
made without Contingent on
Object of which
Recission of The injured party The injured party is is Unlawful Consideration Impossible Events
the contract can repudiate the entitled to repudiate
and claim for contract and claim the contract or sue
damages damages. for restitution but Agreements Agreements
in Restraint of in Restraint of Agreements by
cannot claim the way of wager
damages. Trade Marriage
Means to The party using Party can always
discover the the fraudulent act plead that the (2) Consequences of agreement expressly declared void
truth cannot secure or injured party
protect himself had the means to
Agreements
by saying that the discover the truth. expressly
injured party had declared void Void- ab- initio
means to discover / illegal by the
the truth. Contract Act
A contract is said
Legal
to be performed Promisor himself Promisor’s Agent
-Either perform, or
Representatives
when the
parties
to the -Offer to
contract
perform their
promises
10
BUSINESS LAWS
(8) Is time an essence of Contract? (12) Supervening impossibility
makes
Fails to perform
it impossible
refuses, or his part of the By his act
(11) Impossibility existing at the time of contract or Initial to perform his
contract, or
Impossibility obligation
Case Effects
If the impossibility is known to Such an agreement is void-ab- (2) Effects of the Breach of Contract
the parties initio
If unknown to the parties Such an agreement is void on
the ground of mutual mistake The aggrieved party is
If known to the promisor only Such promisor must gets a right to proceed
relieved from performing
against the party at fault
compensate for any loss his obligation, and
which such promisee sustains
through the non performance
of the promise.
The Chartered Accountant Student January 2021 31
11
BUSINESS LAWS
(3) Types of breach of contract
Case laws Facts Decision
Breach of contract Gibbons A business man whose In the case, it was held
Vs. West credit has suffered will that a non-trader cannot
Minister get exemplary damages get heavy damages in
Bank even if he has sustained the like circumstances,
Anticipatory breach Actual breach no pecuniary loss. unless the damages are
alleged and proved as
special damages.
breach occuring
before time fixed Refusal to perform
for performance has promise on the
arrived scheduled date III. Special types of Contract
Contingent
(4) Liability for Damages Quasi-Contracts
Contracts
Ordinary
damages
Rules Relating to
Cases deemed as
Pre-fixed Special
Enforcement of
Quasi -Contracts
damages damages Contingent Contracts
Contingent contract is
Nominal
damages
12
BUSINESS LAWS
(3) Rules regarding Contingent contracts
(a) Rule 1 regarding contingent contracts (e) Rule 5 regarding contingent contracts
Where a contingent contract is made to do or not to do • Such contract can be enforced by law if before the
anything if an uncertain future event happens, expiry of fixed time-
• Such event does not happen ,or
• it cannot be enforced by law unless and until that • It become certain that such event will not happen.
event has happened.
• If the event becomes impossible, such contracts
become void.
(f) Rule 6 regarding contingent contracts
(1) Meaning
Quasi
Contract
(c) Rule 3 regarding contingent contracts
(d) Rule 4 regarding contingent contracts Obligation is a duty and not the promise of a party
• Such an obligation/right to recover arises “where a Trikamdas T’ was traveling without The suit was decreed in
person lawfully does anything for another person, vs. Bombay ticket in a tram car and his favour.
or delivers anything to him not intending to do so Municipal on checking he was asked
gratuitously and such other person enjoys the benefit Corporation to pay R5/- as penalty to
thereof, compound transaction.
• the latter is bound to make compensation to the T filed a suit against the
former in respect of, or to restore, the thing so done corporation for recovery
or delivered. on the ground that it was
extorted from him.
14
BUSINESS LAWS
CA Foundation - Paper 2A - Business Laws
In this capsule, we have summarized the important concepts of the Unit 1 and 2 of the Chapter 2: The Sale of Goods
Act, 1930. From Examination point of view, this chapter comprises of around 12 to 14 marks of the paper. In this
chapter, students are tested with conceptual understanding of the legal provisions, as well application of the important
concepts in the simple practical scenarios. This capsule will help the students to revise and retain essentials of some
of the important definitions and various requirements in the formation of the Contract of Sale.
15
BUSINESS LAWS
Future Goods Contingent Goods 7. Property [Section 2(11)]
[Section 2 (6)]. [Section 6(2)] Property means
• Goods to be • The acquisition of which
manufactured or • by the seller
produced or • depends upon an uncertain ownership in goods/ and not merely
acquired contingency (uncertain event) General Property a special property
• by the seller after making • Ex: P contracts to sell 500
the contract of sale pieces of particular item 8. Price [Section 2(10)]
• Ex: 1000 quintals of provided the ship which is
potatoes to be grown in Mr. bringing them reaches the
A's field. port safely. Money consideration for a sale of goods
Delivery of
Fulfil other an offer to by acceptance
goods: Transfer for a price
Subject matter: essential Buy/sell of such offer
of property i.e
Movable goods elements of a
ownership to
Valid contract
take place
Basis of difference Sale Hire- Purchase for the immediate delivery of the goods or immediate
payment of the price or Both
Time of passing Immediately On payment of last
property instalment or
Position of the Buyer is like that of Position of the hirer
party owner is like that of bailee for the delivery or payment by instalments
till final payment
or
Termination of the buyer cannot The hirer may
contract terminate the terminate the
that the delivery or payment or both shall be
contract and bound contract by returning postponed.
to pay price the goods
Burden of Risk of risk of seller Owner takes no risk
insolvency of the and has right to take
buyer back the goods 3. Mode for entering into contract of Sale
Transfer of title The buyer can pass a Hirer cannot pass
good title to a bona any title even to a A contract of
fide purchaser bonafide purchaser sale may be
made in-
Resale The buyer can Hirer cannot, unless
all installments paid
17
BUSINESS LAWS
2. Nature of contract of sale with respect to perishing goods
Stipulation as to time of Payment and time
Perishing Goods Future Goods of delivery [Section 11]
Where there is a contract for the Stipulation as to the Stipulations as to time
If the future goods time of payment of delivery are usually
sale of specific goods,
are specific and the essence of the
• no knowledge to the seller contract
• at the time when the
• contract was made, goods the destruction are not deemed to be of Delivery of goods
perished or become so damaged of such goods the essence from the terms must be made
• Contract is void amount to of the contract of sale, without delay
supervening unless terms of contract
Where there is an agreement to sell impossibility state otherwise.
specific goods,
• without any fault on the part of
the seller or buyer
• before the risk passes to the buyer
contract Conditions and Warranties with reference
becomes void
• and subsequently the goods to the goods [Section 12]
perishes or become so damaged 1. Meaning -Condition and Warranty
• agreement can be avoided or
becomes void. Condition Warranty
is a stipulation is a stipulation
essential to the main purpose co-lateral to the main purpose
Ascertainment of price [Section 9] of the contract, of the contract,
the breach of which gives rise the breach of which gives rise
fixed by the contract, or
to a right to treat the contract to a claim for damages
as repudiated. but not to a right to reject the
goods and treat the contract
agreed to be fixed in a manner provided by the contract, or
as repudiated.
Ex: P is having two bikes. He agrees to sell both of the bikes to may be either
‘Conditions’ and express or
S at a price to be fixed by the Q. He gives delivery of one bike ‘Warranties’
immediately. Q refuses to fix the price. As such P ask S to return implied
the bike already delivered while S claims for the delivery of the
second bike too. In the given instance, buyer S shall pay reasonable
price to P for the bike already taken. As regards the Second bike,
the contract can be avoided.
19
BUSINESS LAWS
9. Condition as to wholesomeness 10. Implied Warranties-Types
Ex: A supplied F with milk. The milk contained typhoid germs. F’s Warranty as to non- disclosure of dangerous
wife consumed the milk and was infected and died. Held, there was existence of encumbrances nature of goods
a breach of condition as to fitness and A was liable to pay damages.
buyer shall have the goods shall An implied the goods are
and enjoy quiet be free from warranty as to dangerous in
possession of the any charge or quality or fitness nature and
goods. encumbrance for a particular
purpose may
be annexed or the buyer is
attached by the ignorant of the
If the buyer having danger,
in favour of any usage of trade
got possession of
third party not
the goods, is later
declared or known
on disturbed in his the seller must
to the buyer
possession, Ex: Shares warn the buyer
purchased from of the probable
broker expected to danger.
he is entitled to be free from bad
before or at the
sue the seller for deliveries
time the contract If there is a breach
the breach of the
is entered into. of warranty, the
warranty.
seller may be
liable in damages.
Ex: A Purchased
Ex: : S sells a car
a second hand Ex : Lid of
which was given
typewriter which disinfectant
as security by Y
happened to be powder to be
against a loan
stolen opened with care.
As you would know, the syllabus has been divided into 4 Parts. The table below indicates the relevant details
S.No Part Name Chapters Covered Weight-Age in marks Skill level*
1. Part-I Communication 1 5-6 Level-I
2. Part-II Sentence Types and Vocabulary 2,3 9-10 Level-II
3. Part-III Comprehension and Note Making 4,5 10 Level-II
4. Part-IV Developing Writing Skills 6 to13 15 Level-II
Level-I: Knowledge and Comprehension comprehension or expression.Students can ask themselves simple
Level-II: Application definitions, pointers, examples while studying the chapter to reinforce
Each Part elucidates one of the significant aspects of Business the concept.
Correspondence.
Part-II Sentence Types and Vocabulary (Word Power)
Part-I Communication Overview
Overview: Sentences and Vocabulary are the basic building blocks of all formats
Communication forms the basis of any interaction. It is the process and language constructs. While sentence construction determines
of exchange of ideas, thoughts and opinions through a verbal or and enhances the coherence,clarity and progression in any piece of
non-verbal medium, between two or more people intending to writing; vocabulary lends a meaning, describes its connotation with
communicate or correspond with each other or in a group. precision at the same time enriching the language.
Chapter-1 broadly discusses the essential aspects of the process Chapter 2 Sentence Types comprises the basic sentence structure,
of communication, its types, mediums, characteristics of effective subject, predicate, dependent and independent clauses and types of
communication and barriers. sentences: simple, compound, complex and complex-compound,
Types of Questions subject-verb agreement, types of speech: direct indirect; active-
The questions that can be asked from this chapter can be both direct passive voice.
and indirect in nature. Types of Questions
• Direct questions can be from any topic/concept as mentioned All questions carry one mark, include:
above. • Rewrite a sentence from direct to indirect speech and vice versa
What is network in communication? (1 Mark) • Rewrite a sentence from active to passive voice and vice versa
Define non-verbal communication. What are its various • Identify the type of sentence (compound/complex/compound-
types? (2 Marks) complex)
• Indirect questions check the student’s level of understanding of the
How to Prepare (Tips and Cues)
concept. These can be in the form of statements where comments
You are required to:
or brief explanations are sought on these. Student is expected to
• Develop a habit of reading newspaper articles on myriad themes
answer with appropriate justification or supporting statement or
and subjects, fictional content or reviews.
argument. For example:
• They can try to identify different sentence structures, dependent
Specify the kind of a formal business setting where ‘Star
and independent clauses and types to observe the writing style
Communication Network’ cannot be applied. (1 Mark)
used to state/describe ideas, opinions and suggestions.
Body language can sometimes be deceptive. Comment.
• Comprehend the rules to convert a sentence from direct to indirect
(2 Marks)
speech and vice versa
Physical barriers are a result of our surroundings. Discuss.
• Comprehend the rules to convert a sentence from active to passive
(2 Marks)
voice and vice versa
NOTE: The questions above have been taken from past year • Practise extensively to convert sentences.
question papers. Answers are available as part of Suggested These will not only help to understand the usage/application of the
Answers. various sentence types but also enable you to hone your verbal and
Both the type of questions can be for 1 or 2 marks each. written expression during group discussions and presentations as well
One mark questions should be answered very precisely with clarity. as answering questions during the examination.
Two mark questions may include Chapter-3 Vocabulary
• brief description of the topic/concept covering major points with Includes jargon words/phrases, synonyms-antonyms, roots of words,
examples/illustrations, prefix-suffix, phrasal words, collocations and idioms.
• comments with apt reason/argument/justification
Types of Questions
All questions carry one mark, include:
How to Prepare (Tips and Cues)
• MCQs based on synonyms, antonyms, idioms and collocations.
You are advised to read, comprehend and memorize definitions,
• MCQs as fill ups based on phrasal verbs
concepts and nuances of each topic. Understanding the concepts
is essential to be able to make out what is being asked as questions How to Prepare (Tips and Cues)
are sometimes paraphrased in a manner to test the examinee’s Building a good vocabulary requires regular reading to learn new
21
business correspondence and reporting
words. It can be enhanced gradually by: earlier. Record the answers.
• Judiciously following a daily habit of learning at least 5 new • Figure out the central idea or the theme of the given passage. This
words with their meanings, both in English and Hindi or in the has to be a noun i.e. a person, place, idea, or a thing. Mostly, the
vernacular/ native language. main idea of a passage is stated in the first sentence of the first
• Carrying pocket dictionaries (English to English and English to paragraph. Sometimes it is mentioned at the end of the paragraph
Hindi/native language) always and rarely, anywhere else in the paragraph. In cases where the
• Noting at least one synonym and antonym for each of these words passage is taken from middle or end of a larger text, the central
to understand how these words could be used interchangeably. idea may not be stated at all, but simply implied.
• Identifying words used in colloquial English or frequently used • Read the opening and closing statement of each paragraph.
words in different types and styles of conversations such as debates, • Differentiate between the relevant and irrelevant information in
interviews, lectures, formal speech/address etc. the passage.
• Inculcating the habit of noting down unfamiliar/new words • Mark keywords, these can be subjects or entities (nouns), about
encountered while reading books, studying, attempting questions which something is described, procedures(action verbs) explained,
from exercises or watching any audio/video content. conjunctions between clauses, events/incidents narrated.
• Using these words extensively in oral and written communications
for retention. These may be:
• Preparing a personalized lexicon for ready reference. Reason words – because, due to, owing to, in view of, reason being
These activities/exercises would help to remember the precise Cause-and-effect words – thus, as a result, therefore, leading to,
meaning of the word, its origin, different connotations thereby, culminating into
providing more clarity on the usage with respect to the context. Time words – meanwhile, before, after, at the same time,
simultaneously
Part-III Comprehension passages and Note Making Contrast words – contrary, contrarily, in contrast, conversely,
Chapter-4 Comprehension Passages Unlike, opposite to
Addition words – also, in addition to, As well as, as well
Overview Emphasis words – note, more/most importantly, remember,
Comprehension passages are an integral part of any language moreover
curriculum and most competitive/language exams. Reading without
understanding is inconsequential, as it does nothing beyond • Identify logical sequence of events and supporting details across
phonetics. The exercise aims at enhancing vital language skills such the entire passage describing the central theme.
as Reading, Writing, Listening and Speaking by enabling you to • Mark specific words and phrases. They help to understand the
understand whatever is written in terms of its context and connotation relationship between the ideas in a paragraph or paragraphs.
thus helping you to make out ideas, thoughts, opinions, suggestions • Note the context and sentence structure for clues in case of
from plane words. It also hones your analytical skills. The passages vocabulary based questions specifically, if the answer is not known.
in questions can have academic or general content and style and may • Identify logical sequence of events and supporting details across
include topics from a variety of fields including arts, sciences, social the entire passage describing the central theme.
sciences, etc. You may or may not be familiar to the topic. However, • Read through the passage and identify statements, arguments
an underlying assumption is that the passage is exhaustive and the and inferences or conclusions.
answers to the questions can be retrieved /derived from within the
passage only.
The chapter describes strategies for attempting these passages in a Chapter 5 Note Making
stepwise manner covering: Overview
• Enhancing reading skills by improving reading speed Note Making is significant to learning, revision and retention. It is
• Developing higher order thinking skills through Bloom’s Taxonomy an essential skill to be developed so as to prepare skimmed and
to improve comprehension skills. summarized subject material for revision. Notes essentially comprise
Types of Questions important points, numerous categories and different aspects of the
Part-III is important because there is a compulsory question from subject/entity/idea succinctly without omitting the vital details. As a
the section having two parts with one question each based on student, it is highly relevant for you, as you are required to retain and
Comprehension passage and Note Making carrying 5 marks each. recall voluminous subject contents during examinations and in other
In Comprehension Passages, there may be 4 to 5 questions (for 1 or 2 academic pursuits and even later in your profession while making
marks) based on a given text/passage/excerpt that primarily include: speeches and presentations.
• Multiple Choice Questions The chapter enables students to:
• Subjective questions to be answered in 1-2 sentences • Prepare extensive notes in a structured manner spanning through
These can be: the text without skipping any detail complete with indentation and
Main idea questions:Test the understanding of the whole passage abbreviations.
rather than the individual paragraphs/sections of the passage. • Write summary comprising pertinent details.
Specific detail questions: Based on the facts/details/events presented It highlights the significance of the topic for students and elucidates
in the passage. a step wise process to prepare notes for a given text material in a
Inference questions: Ask to draw a logical conclusion from what is sequential manner comprising:
said in the passage. • Strategies of effective Note Making
Vocabulary based questions: Ask the meaning of a word or phrase • Difference between Note Making and Note Taking
within the context of the passage. • Linear Note Making
• Steps for Linear Note Making
How to Prepare (Tips and Cues)
Format
After a cursory reading of the passage and the questions, try to
Indentation
comprehend the passage verbatim. Thereafter, you must attempt to:
Abbreviations/Acronyms
• Find /locate/identify same/similar/associative words from the
question in the passage. Types of Questions
• Ask questions like What, When, Where, How and seek answers in Question in Note Making has 2 parts
the passage about the keywords, subjects or procedures identified • To prepare Notes
23
business correspondence and reporting
• Paragraph-2: These are reminders, formal communications (One to many) to be
Narrate the event in a chronological manner, stating minute yet communicated amongst a limited target audience of a particular office
significant details. departments/staff members of an institution or a specific group of
List down the programmes/activities entailed and brief members of a club or organisation, informing/apprising them about
description of each of them / Causes of the incident, a specific decision.
State relevant facts/figures; include / description by eye Format
witnesses/ audience feedback. Name of the organization/institution/club
• Concluding Paragraph-3: Inter Departmental Memo
Future perspectives, plans; important implications, major Date:
repercussions; concluding remarks/comments. To: Employees of a Department/ Teachers of a class or department/
Senior Members of a club
(D) Chapter-10 Formal Letters and Official Communication
From: Name with Designation and Department
(i) Letter
Subject: Objective clearly stated such as: Purchase/Issuance of
Format with tips equipment such as Laptops Mobile Phones/ Tablets; Suspension/
Sender’s Address Dismissal of Mr. X;
Date: • Paragraph-1
Addressee’s Address Information/Decision with stringent norms/penal action if
Salutation required, clearly stated.
Subject: A one line statement crisply citing the purpose of the letter
(E) Writing Formal E-Mails: These are most commonly used means
that catches the attention of the recipient and makes the intent aptly
of instant one to one OR one to many communication. E-mails are
clear.
used/exchanged to share information, issue instructions, demand
• Introduction (Paragraph-1)
action, elicit response, request details or any other purpose where
Briefly mention the reason/objective for writing in 2-3
some interaction is needed.
sentences.
• Main Body (Paragraph-2) Format
Pertinent details about the subject matter and key points to be To: E-mail address (es) of the recipient(s).
conveyed in 3-4 sentences. . Cc: Copy to: E-Mail addresses of the other stakeholders concerned
Include Item/cheque/order/complaint number; with the communication
Product/Order/Cheque/Complaint specifications or any other Subject: Purpose of sending the mail clearly stated such as: Payment
supporting document to a vendor for bill number xxx; Confirmation of Order Number xxx;
In case of a complaint/request for replacement, specify the Status of application for registration to CA Foundation/Intermediate/
person in-charge /entity who will visit to address the issue. Final etc.
• Concluding Paragraph-3 • Main Body
Re-iterate the objective; Salutations: Dear/Respected Sir/Madam
State appropriate action to be taken(if, any) by the recipient; • Paragraph-1
Expected timeline/(timely delivery, quality, specific Brief description in 1-2 sentences, about the purpose of the
requirements). mail with reference to the subject.
Essential terms and conditions to be adhered to • Paragraph-2
Close the letter on a positive note, hoping for a favourable Pertinent details including recent correspondence such as
response within the designated time period. policy decision, data gathered about the issue, any other
• Complimentary Close: Warm Regards/Thanking You/Yours truly/ information
Yours sincerely Specific action expected from the recipient. Clear and concise
• Sender’s Name & Designation instructions should be given.
Enclose necessary annexures/ attachments (if, required)
(D)(ii) Official Communication: Circulars • Paragraph-3
These are formal communications (One to many) to be propagated Express hope for a favourable response from the recipient
amongst a large target audience such as office employees, students in within the stipulated time period.
an institution or members of a club/consortium/organization • Complimentary Closure: Regards/Warm or Best Regards
Format Name and designation of the sender
Circular No. xxxxx Date: Telephone Number: Landline, Mobile (optional)
Title in 2-3 words : Office Transport Rules/
Working Hours;School Vacations/ Trip; (F) Resume Writing
Club timings/rules; Party Meetings etc. • Chronological Resume: Resume is a formal document that
comprises complete information about the antecedents of an
For all employees/students/members, incumbent including personal, academic and training(Information
• Paragraph-1 Technology & Soft skills) related details to be presented to the
Objective of the communication should be clearly stated prospective employer in accordance with a specific post/profile in
unambiguously, with relevant details. a specific chronological sequence. This format is most commonly
• Paragraph-2 used by students who intend to apply for formal training
If any action or response is requested, specify the name of programmes as part of professional courses such as article-ship as
the employee/teacher/member with complete details such as: part of the Chartered Accountancy Course.
designation, department, official E-mail, telephone number Format (Chronological Resume)
etc. • Name and Contact Details
Name of the Person (Optional) • Career Objective
Designation with Department (Mandatory) • Academic achievements/antecedents in a chronological sequence
• Co-curricular Achievements
(D)(iii) Official Communication: Memos OR Memorandums • Previous trainings completed / conducted
The Chartered Accountant Student September 2021 33
24
business correspondence and reporting
• Technical/soft skills highlight the reason for applying, strengths and requisite skill set vis
• Interests/Hobbies (optional) a vis the position so as to evoke employer’s interest in the applicant /
• Personal Details incumbent.
• Declaration about the details mentioned in the resume document Format
being true. Sender’s Address
• Date: Name and Signature
Date:
(F)(ii) Functional Resume: Designation/Name of the Addressee:
This emphasises your skills and achievements. Previous experience is Address:
of little importance. The format is ideal for professionals who intend Salutation:
to join their respective profession after a gap/sabbatical or those who Subject:
have numerous gaps in their career due to whatever reasons. • Paragraph-1
Format Introduction with name and position against which applied;
• Name and Contact Details mention the source of information
• Career Objective • Paragraph-2
• Skills Explain the incumbent’s interest in the job profile
• Technical Training/s Highlight relevant skills and experience most suited for the job
• Achievements profile.
• Experience Make specific associations between capabilities and job
• Academic details requirements as mentioned in the job description.
• Personal details Project the skills and experience to make the incumbent most
• Declaration about the details mentioned in the resume document suitable for the job.
being true. Exhibit awareness about the organisation’s affairs.
• Date: Name and Signature • Concluding Paragraph-3
Hope for a favourable response
(F)(iii) Combination Resume: Ask for follow up details and tentative dates for the subsequent
This presents a combination of the incumbent’s skills along with interview/interaction.
professional and academic antecedents. This format is used to • Complimentary Closure
highlight past employment history and specific skill-sets suitable for Yours Sincerely/Thanks & Regards/Best Regards/Warm
a given job profile while applying for the same. It is written in reverse Regards
chronological sequence with the recent job profile coming first and Signature
so on. (Name)
Format
• Name and Contact Details (G) Meetings: It can be defined as an assembly of individuals in a
• Career Objective formal environment such as a corporate set-up to deliberate/debate
• Summary of experience gained upon certain issues/problems in order to conclude matters, in most
• Experience details in reverse chronological sequence cases take decisions. Meetings are mostly preordained, to be held at a
Name of the Organisation/Company fixed time, date and venue with a fixed agenda entailing issues/items
Position/Designation held to be discussed.
Responsibilities Agenda: It is prepared in advance, with items (including requisite
Appreciation/Promotions/Rewards if, any annexures) contributed by or prepared with the consent of some of
• Technical/soft skills the key participants. Once prepared, the draft Agenda is circulated/
• Academic achievements/antecedents in a chronological sequence propagated amongst the participants/attendees. The Agenda defines/
• Co-curricular Achievements determines and ensures:
• Previous trainings conducted • Objective of a meeting
• Personal Details • Issues/topics to be discussed
• Declaration about the details mentioned in the resume document • Specific time slot allocated to each speaker
being true. • Sequence in which the issues will be taken up during the meeting.
• Date: Name and Signature • Meeting is focused and speakers do not deviate from the issues.
(F)(iv) Cover Letter: It is a formal letter to express interest for a (G)(i) Tabular Agenda
specific job profile/position advertised by an organization. It must Format
25
business correspondence and reporting
(G)(ii) Minutes of a Meeting: These entail comments/opinions/ (G)(iii) Action Taken Report: Detailed Report to be submitted by
suggestions put forth by each of the speaker/participant on a an official or team on the ground work done/action taken arising out
particular item/issue and the subsequent decision taken, stated of the discussions held during a meeting. It is important to gauge the
unambiguously in a sequential manner. These are documented and progress on the respective item/issue discussed during the previous
duly filed/maintained as a compilation for future reference. meeting.
Format Format
Date: Action Taken Report nth Meeting of Department Heads
XYZ Ltd.
Time:
As per the meeting held on date: , at : venue; the following have been
Venue:
reported:
Meeting started in time • Marketing team compiled the suggestions and tendering process
Mr. X, Director Operations (Convenor) gave an Introduction initiated the tendering process Annexure-I
Mr. Y, the Product Head explained the new product and its salient • The HR team prepared the modalities for the recruitment process.
features. Detailed report submitted as Annexure-II
Mr.Z , the Marketing Head gave a detailed presentation about the Undersigned
marketing strategy for various media. The details have been captured Director, Operations (Convenor)
in Annexure-A. Suggestions were sought from the members.
Individual reports to be submitted by (specified dates) Dos and Don’ts
Mr.A the Sales Head along with a team member explained the sales • Do practise questions in Part-III and Part-IV from Revision Test
strategy in upcoming as well as existing markets. Details are provided Papers (RTPs), previous year question papers and Mock Test
in Annexure-B. Suggested to recruit more staff to scale up the sales Papers (MTPs).
operations. • Do write complete words, do not use abbreviations unless required
Mr. B the HR Head, proposed for a separate meeting to be held within (in Note Making)
a week’s time to discuss the modalities of the recruitment process. • Do use different types(Simple, Compound and Complex) of
Mr. C the Managing Director declared the house open for suggestions sentences((Simple, Compound and Complex); Direct/Indirect;
and thanked the participants. Active /Passive) to highlight your writing skills, specifically while
attempting questions form Part-IV
Concluding Remarks:
• Do not exceed the word limit ( 250-300 words) and time limit (15-
Proposal for fresh recruitments
18 min each) specifically for writing exercises (Part-IV).
Marketing Team to collate the suggestions from participants and • Do not use unfamiliar words.
prepare a detailed report. • Do not write overtly long sentences with multiple clauses.
Marketing Team to initiate the tendering process to identify media • Do not repeat the same point to increase the length of the answer
partners to advertise the new product. • Do not repeat a word in an answer; use synonyms to highlight your
Action Taken Report to be submitted by the Marketing and Sales vocabulary.
Team by (specified date) • Revise your answers and if time permits, edit it.