How to Solve Business Law Case Studies: Step-by-Step PFC Method
In Paper 2 (Business Law), many students lose marks despite knowing the legal provisions because of poor answer structure. The ICAI expects a structured approach rather than long, unstructured paragraphs.
The **PFC Method** is the gold standard for writing case study answers in CA Foundation and Intermediate exams.
The P-F-C Framework Structure:
1. Provision (P) 📜
State the legal provisions, section numbers, and acts applicable to the case. Never mention the names of characters from the question in this section.
2. Facts of the Case (F) 🕵️
Summarize the facts given in the question in 2-3 concise lines. Introduce the characters and the specific dispute.
3. Conclusion (C) ⚖️
Apply the Provision to the Facts and state your final decision. Provide a clear recommendation answering the examiner's question.
Solved Example: Minor's Agreement
Question: X, a minor, borrows ₹10,000 from Y by misrepresenting his age and signs a promissory note. Can Y recover this amount?
1. Provision:
As per Section 11 of the Indian Contract Act, 1872, a person is competent to contract only if they are of the age of majority. A contract entered into by a minor is void ab-initio (void from the very beginning), as established in the landmark case of Mohori Bibee v. Dharmodas Ghose.
2. Facts:
In this case, X is a minor who misrepresented his age to borrow ₹10,000 from Y and signed a promissory note.
3. Conclusion:
Applying the provision, Y cannot recover the borrowed amount of ₹10,000 from X because the contract was void ab-initio. X is not liable even if he misrepresented his age, as the rule of estoppel does not apply to a minor.
