logo

The Business Law Assignment (DOC)

   

Added on  2020-03-23

8 Pages1723 Words58 Views
Running head: BUSINESS LAWBusiness lawName of the StudentName of the UniversityAuthor Note

BUSINESS LAW1Issue There are two issue which have been identified in relation to the case1.Whether an argument can be made by the car finance company with respect to having avalid mortgage over the office of Kakadu Tourism Services Pty Ltd (KTS)2.Whether the mortgage over the house owned by KTS can be enforced by Easy LoanBank through relying on the assumptions provided in Section 129 of the Corporation Act2001 (Cth). Rule Section 124 of the CA deals with the legal capacity of the company in relation to getting into atransaction. As per the section the law provides the capacity to the company to get into atransaction like an individual person. As per section 125 of the Act the power of the company to get into a valid transaction cannotmerely be restricted if the constitution of the company does not allow such transaction. Atransaction can be valid even it has been prohibited by the constitution of the company. In the case of Lion Nathan Australia Pty Ltd v Coopers Brewery Limited (2006) 59 ACSR444 it had been ruled by the court that the constitution of a company is has to be interpretedbroadly in order to determine the powers of the company. In this case the court used the section125 of the CA to provide that act outside the scope of the company’s constitution are alsobinding on it.

BUSINESS LAW2According to the provisions of section 126 of the Act the power of a company in relation to aparticular transaction can be carried on by an individual who acts on behalf of the companythrough its express or implied authority even if the common seal of the company is not used. In the case of Royal British v Bank v Turquand(1856)119 ER 886it had been provided by thecourt that it is the right of an outsider to assume that the internal rules of the organizations havebeen complied with anyone using the authority of the company to get into a transaction. Section 128 of the Act provides a third person to make assumptions in relation to the company.The section provides that if a person has power under section 129 of the Act to make anassumption the company cannot provide the assentation that the assumption made by suchperson is not valid. An assumption can be made by a person with respect to a transaction withanother person who provides to have acquired title of the company’s property in a direct or anindirect manner. In such situation also the third person or the company cannot provided in thecourt that the assumptions are not valid. Even if an agent or officer of the company had forged adocument or have acted fraudulently the assumptions under the section can be made. In case aperson knew or suspected an assumption to be incorrect they cannot rely on the assumptionsunder section 129. In the case of Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 146 thecourt ruled that In case a person knew or suspected an assumption to be incorrect they cannotrely on the assumptions with respect to dealing with the company. A person under section 129 of the Act has the right to assume that in relation to the transactionthe replaceable rules and constitution of the company has been complied with. In addition aperson has the power to assume anyone with respect to the information provided by the ASIC

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Law Assignment | Corporation ACT 2001
|7
|1754
|35

Business Law
|9
|2334
|449

Business laws Assignment : Four Friends Pty Ltd
|9
|2179
|5

Commercial and Corporation Law- Royal British Bank v Turquand case
|10
|2404
|127

Business Law
|10
|2521
|222

Common Law Position At Common Law Name of the Student Name of the University
|13
|2937
|344