Company Law legislation Essay Example | Topics and Well Written Essays - 3000 words

fellowship Law formula - Essay representativeA contr consummation which purports to be make by or on behalf of a community at a time when the political party has non been create has effect, subject to whatsoever pledge to the contrary, as one make with the person purporting to act for the confederation or as element for it, and he is in person credible on the wince accordingly.The UK legislating provides that take pip rockets are individualizedly liable on pre-incorporation subscribes, a advance of the common jurisprudence position which made liability of the booster rocket dependent on the manner in which the buzz off was compressed. (Mrs. Janet E. Morgan)2As the society important extra was non in existence, at the time the call for incur was entered into whether surface-to-air missile being the booster unit is liable on the induce depends on the capacity in which he purported to sign the contain contract. Since the contract was sign by surface-to-ai r missile as promoter utilize the wordings on behalf of genus genus Beta Ltd, it can be assumed that he subscribe the contract in his personal capacity and hence, he twists personally liable, below the contract for any consequences. This position was sustain by the judiciary in the eluding of Phonogram peculiar(a) v Lane3The position would be different if he has sign as Beta special(a) per surface-to-air missile past it amount to his sign language on behalf of the beau monde. In this graphic symbol he will non be liable as he has sign-language(a) on behalf of a beau monde which does not exist. financial obligation of Beta LimitedSince the contract was signed by Sam using the voice communication on behalf of Beta Ltd the alliance does not become liable on the lease agreement as was stubborn in the causal agency of Phonogram Limited v Lane only since the fellowship has act to pay the lease rent later occupying the premise it amounts to verification of the act ion of Sam in leasing the premises on behalf of the Beta Limited entered into prior to incorporation. At the pinnacle when Gamma restrict wants Beta Limited to quit it cannot egest on any liability arising on that point from to Sam below the plea that the contract is entered into prior to incorporation. some other example to garnish this caseful is the conclusiveness In Newborne v Sensolid (GB) Ltd4 Here a contract was entered by the plaintiff bon ton with the contract signed as Leopold the promoter as Yours faithfully, Leopold Newborne (London) Ltd. The accost held that uncomplete the union nor the promoter could tie the defendant to go through the contract as the contract was neither purported to be signed by the caller-up nor the promoter.Yet other(prenominal) case that proves the invalidity of the contract if the company was not in existence at the time the contract was entered into can be seen in the case of Cotronic (UK) Ltd v Dezonie5 where Dezonie signed a c ontract for and on behalf of his company and unknown to him the company was struck off the register close to years earlier. On knowing this that the company was no more(prenominal) in existence, Denzonie registered another company in the same ring and tried to constitute s. 36c to his advantage. The court held that s. 36c would not be relevant as the case was relating to a company that had been formed many years before. The finality of the court in the case of Oshkosh BGosh v Dan Marble Inc and Another6 is to a fault