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Doctrine of ultra vires

Corporate & Other Laws

Can u explain the sentence in bracket

Shruthi V

CA Inter

★ 0

12-Nov-20 19:09

478

Answers (1)

If a companyâ??s memorandum of association states that the company cannot trade in vegetable oil but the company enters into contracts to buy vegetable oil and does not pay the seller, seller cannot sue the company for honouring the payment. Also the company cannot sue the seller if quality of oil is bad. Sue means filing a legal case