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Problem based assignment - Essay Example

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Contents PART A 2 Step 1: Identify Legal Issue/s 2 Step 2: Relevant Law 2 Step 3: Apply the Law 3 Step 4: Conclusion 3 PART B 4 Step 1: Identify Legal Issue/s 4 Step 2: Relevant Law 5 Step 3: Apply the Law 6 Step 4: Conclusion 7 PART C 8 Step 1: Identify Legal Issue/s 8 Step 2: Relevant Law 8 Step 3: Apply the Law 10 Step 4: Conclusion 11 PART A Step 1: Identify Legal Issue/s The legal issues in the mentioned case relate to the extent of compliance requirement of Minco NL with the company’s constitution and the proper process to amend it…
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Download file to see previous pages It is treated as a natural separate person due to which, it is responsible for all acts or liability bound to it. The company therefore can enter into contract on its own name and due to which it liable for any breach of that contract, e.g. the director is considered as a natural person who acts on behalf of the company. The managing director who is working on behalf of company is actually considered as secondary liability in which the company is responsible for the acts of another. the director in this case is working on behalf of company and his acts are directly attributed to the company as he is not the servant or agent of company, he is director with powers to bind the company into contract which clearly states that any guilt or liability arise due to the contract by director will automatically bound the company into that contract , and so the company will be liable for that contract and any breach of that contract can sue the company as a separate legal entity and not the director. ...
In the given scenario the director of company entered into the contract of $1 million, but actually the director was only allowed to enter the contract below $ 500,000. The director is exceeding his capacity for entering into the contract. However the company mincoNL will be sued for the wrongful act of the director, and company can fine or charge the director for his wrongful act. So according to the case in Tesco Supermarkets Ltd v Nattrass, in this scenario the same situation applies on company. Step 4: Conclusion if the director enters into the contract, the company according to The corporate criminal liability, company is convicted of a crime committed by directors or employees who are acting as the company`s mind. Under the criminal and civil penalties, the director will be fined or can be banned by the company. Although the company is liable for the contract the company will sue the director for exceeding his authority powers of contractual capacity which he was not permitted by the company. PART B Step 1: Identify Legal Issue/s EquiPtyLtd is facing problems about the legal matters regarding company law and want an advice. The company had a contract to deliver 2 buses of worth $1m to MincoNL. But now MincoNL’s directors refused to take delivery of buses on the basis of following grounds. 1. EquiptyLTD was entered into the contract with jaonne flywell, the managing director of the MincoNL. Jaonne has only the maximum purchasing limit of 0. $5m .As this was written in constitution so Equiptyltd should know about it. The Area of law which deals with this matter is the statutory assumptions described in the company law. The ...Download file to see next pages Read More
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