ADMS2610-Session2-Ch9

ADMS2610-Session2-Ch9 - ADMS2610 Session 2 Chapter 9 (pg....

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ADMS2610 Session 2 Chapter 9 (pg. 162-170) Requirement of Legality Two Types of Corporations - Regular Corporations o Same powers as a natural person o Limitations through internal bylaws (articles of incorporation) are not public knowledge but may in certain cases bind the public - Special Act Corporations o Powers controlled by Special Act o Limitations are public knowledge because they are contained in a statute Ultra Vires (an act that is beyond the legal authority or power of a legislature or corporate body) - Special Act Corporations o Not bound by contracts that are ultra vires - Regular Corporations o Bound by contracts that are ultra vires—Internal Management Rule Labour Unions - Ability to enter into contracts (collective bargaining agreements) allowed under labour legislation o Normally would be unenforceable (restraint of trade) Bankrupt Persons - Declared bankrupts have limited capacity to contract - Until receipt of a discharge, the person may not enter into any contract except for necessaries Requirement of Legality - Contracts that offend public good are unenforceable - Contracts whose purpose is illegal, may be illegal are enforceable - Some contracts are only rendered voidable by public policy or by specific statutes o Voidable if the parties do not comply with statute or the policy Legality under Statute Law - Generally o Illegal contracts is an agreement to commit a crime (rob, assault,
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This note was uploaded on 03/25/2011 for the course ADMS 2610 taught by Professor Joshuasera during the Winter '10 term at York University.

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ADMS2610-Session2-Ch9 - ADMS2610 Session 2 Chapter 9 (pg....

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