Company Law

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* Given name – Thomas | * |

* Surname - Seward | * |

* Student number - 118396205 | * |

* Email – 21115426@student.uwa.edu.au | * |

* Unit name – Company Law for Business | * |

* Unit code – BLAW2006 | * |

* Assignment title – Company Law Assignment | * |

* Date submitted – 2/4/15 | * |

* Student’s comment to tutor * DECLARATION: I declare the attached assessment is my own work and has not previously been submitted for assessment. This work complies with Curtin University rules concerning plagiarism and copyright. [Refer to http://www.policies.curtin.edu.au/documents/academic_misconduct.doc for plagiarism & copyright information.] * |

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(i)

Issue:

Would Felines Pty Ltd’s be able to enforce their contract with Lassie Ltd even though it is against their constitution?

Relevant law:

Corporation Act 2001 s 124(1) – Company has legal capacity to undertake those things authorised by law.

Corporation Act 2001 s 125(2) – even though a company has an objects clause it does not limit its power to contract.

Application:

Firstly is a company capable of entering into a contract? According to s 124(1) a company has the legal capacity and powers of an individual meaning it has the ability to enter into a contract. In relation to the contract between Lassie Ltd and Feline Pty Ltd, Lassie argues that the contract is invalid and unenforceable as it is against their constitution. Lassie Ltd’s argument is wrong, as s 125(2) states “an...