Assignment Example | Topics and Well Written Essays - 2500 words - 5

Assignment ExampleThis means that when a come with makes an concord, they must honor this agreement tied(p) if the terms are beyond the administration.In this case, the cat contr pretend with felid Fertility Pty Ltd is enforceable since comp any willing entered the contract while understanding that the their constitution did not allow them to trade in cats. jeune fille Ltd argues that since the company constitution does not allow the company to trade cats, the contract was invalid and unenforceable. However, going by the law, the fact that the company entered the agreement with Feline Fertility Pty Limited, it remains valid even if this goes beyond the constitution. Therefore, Feline Fertility can move to the court to have the contract enforced and to avoid termination. Alternatively, Lessie Ltd should finance any losses that the other company may incur as a result of this termination.The Company act of 2001 states that a director of the company must act within the constitution while conducting business on behalf of the company. Since the director of the company conducts the business on behalf of the stakeholders, the constitution limits their actions.5 However, this must be in tandem with the requirements of the constitution. In this case, Willy Woof has the power to make decisions regarding the business process, as long as these decisions do not encroach the constitution. The company current constitution allows the director to enter the lease with Hot Ltd.6 However, the other company directors intends to take on a new clause that requires that the establishment of any store outside the state of Western Australia requires the encomium of all the directors. If the amendment is successfully integrated in the constitution, Lessie will not be able to enter into the agreement with Hot Ltd since the constitution will empower other directors to object such a move7. Therefore, changes in the constitution will help