Question

In: Accounting

1. The parties who are bound by a company's articles are: the company who is bound...

1. The parties who are bound by a company's articles are: the company who is bound to the members, the members who are bound to the company and the members who are bound to the other members in their capacity as members.

True

False

2.

Amy is the promoter of Enrich Ltd. Before the company is incorporated, she enters into a contract purportedly on behalf of Enrich Ltd with Comicon PLC. After the certificate of incorporation is issued, the contract is breached. Who is liable?

Amy

Comicon PLC

Enrich Ltd

3.

A company can confirm a pre-incorporation contract by performing it or obtaining benefits from it

True

False

4.

An accountant or solicitor acting in their professional capacity during the registration of a company may be deemed a promoter.

True

False

5.

A pre-incorporation contract is a contract made in a company's name before it is formed. Companies are bound by such contracts as they do not exist when the contracts are made

True

False

Solutions

Expert Solution

1) TRUE, The Articles of Association (AOA) of the company states that the parties who are bound by the company's articles are also bound to its members and if company breach or do violations of their rights, the company and its members will be liable for the Act.

2) Enrich Ltd., Since the Amy has entered into contract before the incorporation of the Enrich ltd Co. with the Comicon PLC and the contract is breached then the Co. (Enrich Ltd.) would be liable if the company has accepted the contract which was contracted by the Amy. Then, the Comapny would be solely liable to Comicon Ltd.

3) TRUE, The company can perform Pre-Incorporation contracts and can obtains benefits form it. if the company bears any loss they do have to suffer from the same.

4) FALSE, An Accountant or a Solicitor in their professional capacity during the registration of company cannot be deemed as Promoter of Company as the promoter would be any person who have vested personal interest in the business.

5) FALSE, The Pre-Incorporation Contract made by the company before incorporation would be bound to the other parties (Contractee), if the Contractor and the contractee has agreed to continue the contarct after incorporation of business. The contract would be bound by the two of them.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Collective Bargaining Agreement - Who are are the parties in the CBA of Apple company? briefly...
Collective Bargaining Agreement - Who are are the parties in the CBA of Apple company? briefly describe whether it is a private or public entity, and a brief overview of the industry and governing body. - what is addressed in the article on Management rights? what specifically is of note?
1. A company's articles can contain provisions that cannot be altered True False 2. In relation...
1. A company's articles can contain provisions that cannot be altered True False 2. In relation to a company's contractual capacity, the ultra vires doctrine has been abolished. True False 3. Breach of any term in the statutory contract will allow either the company or a member to sue for breach of contract. True False 4. Under the Companies Act 2006, you find the objects of a company set out in the Memorandum of Association. True False 5. Companies incorporated...
1.Who are the four parties to a life insurance contract? 2.What are two ways in which...
1.Who are the four parties to a life insurance contract? 2.What are two ways in which a will can be revoked?
I. True or False Questions : 1. The parties who have contracted on CIF terms may...
I. True or False Questions : 1. The parties who have contracted on CIF terms may have varied some of the obligations undertaken by them. It is also possible that a contract expressed on CIF terms may contain clauses that suggest the parties never intended to contract on CIF terms. In this case, the nature of the contract would change. 2. The seller under CIF must obtain, at its own expense, cargo insurance complying at least with the minimum cover...
Given the integral 1/x dx upper bound 2 lower bound 1 (a) use simpson's rule to...
Given the integral 1/x dx upper bound 2 lower bound 1 (a) use simpson's rule to approximate the answer with n=4 Formula:f(x)=1/3[f(x0)+4f(x1)+2f(x2)+...+f(xn)]Δx(keep answer to 6 decimals) b)how large is n in order for the error of Simpsons rule for the given integral is no more than 0.000001 Formula: |Es|=(k)(b-a)^5/(180 n^4), where |f^4(x)≤k| please show all work and steps
1. Analyze two or more articles (citing the articles consulted) of the environments that influence the...
1. Analyze two or more articles (citing the articles consulted) of the environments that influence the negotiations of products or services of Colombia and Germany in the political, economic and competitive environment of both countries separately.
What is fiscal policy? Who are the parties involved in creating fiscal policy in the U.S....
What is fiscal policy? Who are the parties involved in creating fiscal policy in the U.S. economy? What are the two general types of fiscal policy? What 2 tools are used to implement fiscal policy? When are the two general types of fiscal policy used according to economic theory? Be specific in your answer.
Discuss the priorities among the various parties who may have competing interests in collateral and the...
Discuss the priorities among the various parties who may have competing interests in collateral and the rights and remedies of the parties to a security agreement after default by the debtor.
Two parties claim the same goods in the following situations. Discuss who is most likely to...
Two parties claim the same goods in the following situations. Discuss who is most likely to prevail in each case and explain why. Richard steals Juan’s new mountain bike set and sells it to Travis, an innocent purchaser, for value. Juan learns Travis has the set and demands its return. Juan takes his mountain bike for repair to Boulder’s Builders, a merchant who sells new and used bikes. By accident, one of Boulder’s employees sells the set to Travis, an...
Explain what a letter of credit (L/C) is, who the principle parties are, what the principle...
Explain what a letter of credit (L/C) is, who the principle parties are, what the principle advantage is, and how the L/C facilitates international trade.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT