Commercial Law and Preliminaries of Auditing · Ch 2 — Law of Contract
Overview
Overview
Law of Contract — how this chapter is examined
Law of Contract is the single largest unit in the Semester I (Class XI) paper, carrying 16 of the 40 marks on Part A (Commercial Law). Semester I is a 100% Multiple Choice Question (MCQ) paper — every mark in the real WBCHSE examination for this unit is earned through 1-mark
MCQs, not through long descriptive answers.
How this chapter is organised
The MCQs in this chapter (grouped under "Multiple Choice Questions") are the content that
mirrors your real Semester I paper. In addition, this chapter also includes a set of
Case Problem questions — realistic fact-pattern scenarios that apply the law you have
learned. These Case Problems are supplementary practice, not part of the 40-mark MCQ paper — the real exam for this unit will not ask you to write a long case analysis. They
exist here because applying a rule of law to a fact pattern is the best way to actually
understand it, even though the exam itself only tests you with MCQs.
This chapter builds on the Indian Contract Act, 1872 — the parent statute for the whole of
Indian commercial law, and the Act every other unit in this syllabus (Sale of Goods Act, Law of
Partnership, Negotiable Instruments, Law of Insurance) borrows its foundational vocabulary from
(agreement, contract, consideration, capacity, consent all trace back to this one Act). WBCHSE's Commercial Law and Preliminaries of Auditing syllabus draws on the same Indian business-law principles — the Indian Contract Act, 1872 — that are also taught in CBSE/NCERT Business Studies and Accountancy, so the reasoning here transfers directly to those boards' own contract-law units.
The unit covers seven sub-topics, in the syllabus's own lettered order: (a) Agreement and
Contract — essential elements; (b) Offer and Acceptance; (c) Consideration; (d) Void and
Voidable Agreements; (e) Capacity of Parties; (f) Free Consent; (g) Legality of Object and
Consideration.