"The Company Act 2006 has significantly altered the position of outsiders as far as transactions with the company are concerned." A company is liable for the wrongful acts of an agent or employee acting within the scope of his authority or in the course of his employment (Lister v Hersley Hall Ltd [2001] 2 All ER 769; Dubai Aluminum Co ltd v Salaam [2003]), as the case with any principal or employer. Sometimes additional rules of attribution are needed in the civil context where intention or knowledge ingredient of the cause of action or defense, for example if a company is to be liable for "knowing receipt" (El Ajoy v Dollar Land Holdings Plc [1994] 1BCLC 464) or knowing being a path to fraudulent trading (Morris v Bank of India). The essential point is that, subject to certain statutory exceptions, in English law it is not possible for a person to sue on, or to be sued on, a contract, unless that person is a party to it. It is a rule which the contract lawyers call privity contract (Suttons v Midland Silicones [1962]. Corporate liability in the contract: Any due formalities of execution have been observed CA 2006, ss 44 and 46. A company many enter into a contract in writing under its seal (if it has one) or more commonly, a contract may be made on behalf of the company by a person (such as director or manager) acting under its authority, express or implied (s.44) Issues of capacity are of ever-decreasing significance so the essential contractual issues revolve
The plaintiff (Southern Prestige Industries, Inc.) initiated an action against the defendant (Independence Plating Corp.) in a North Carolina state court for a breach of contract. The plaintiff alleged that defects in the defendant’s anodizing process caused the plaintiff’s machine parts to be rejected by Kidde Aerospace. The defendant being a New Jersey corporation and having its only office and all of its personnel situated in the state filed a motion to dismiss citing lack of personal jurisdiction. The trial court denied the motion and the defendant appealed arguing that there were insufficient contacts to satisfy the due process of law requirements
* The liability does not fall on one individual instead it is assumed by the business in a corporation. Individuals representing the company can still be personally sued in some states.
Further area left unanswered by Sprod bnf v Public Relations Oriented Security was highlighted in McCracken v Melbourne Storm Rugby League Footbal Club (2005)[16]. This case stated that employer is imposed vicarious liability upon employer for animosity act or criminal act by employees. The case also stated that there must be closely connection within the authority of employees and act by which their employer was considered to be vicariously liable. This case may resolve the entire issues rise in Sprof bnf v Public Relations Oriented Security.
This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable
In order to establish the liability of each party involved, it must first be determined whether the liable party will be KAL itself as a corporate personality or its directors. The case of Salomon v Salomon & Co Ltd has established the legal principle of a company as a separate legal entity with its own rights and responsibilities. This legal doctrine was reaffirmed in Andar Transport Pty Ltd v Brambles Ltd when Justice Kirby held that “the mere fact that the company may be owned or controlled
In the year 1999, the Supreme Court of Canada re-reviewed various case related to the law of tendering so as to come to definite conclusion. For instance in the case of MJB Enterprises Ltd. v. Defence Construction (1951) Ltd. The problem was the case of a 'privilege clause' used in many tender documents according to which the lowest tender or any tender may not be inevitably approved. The Court established that Contract A may not be active automatically after a tender call, but may enter depending upon the conditions of the tender documents. After the recognition of the fact that Contract A came in the case before it, the Canadian Court in M.J.B. went through a deal with the owner's responsibility there
The strategic design lens assumes organizations are deliberate, goal-achieving entities (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 10). In this view, managers can achieve organizational goals by understanding the fundamentals of design and fitting design to strategy, as well as to the larger organizational environment (Ancona et al., 2005: M-2, 12). In this paper, I discuss the five major elements of strategy – environmental fit, strategic intent, strategic grouping, strategic linking, and alignment – and identify two specific elements as causes of the problems Dynacorp is experiencing with its redesign. These elements are strategic linking and alignment.
In some companies who are not highly set in their ways this can lead to necessary changes being made in those companies. For others who are set in their ways may give a the case a positive vote.(Book)
1. A company has a separate legal personality from the members in the company so in law it has separate rights and liabilities. The company can enter contracts and own property which wouldn 't make the members of the company liable only the company itself.
For the purposes of this assignment the relevant law is the Corporations Act 2001 (Cth) (either as the “Act” of the “CA”). From now on I will refer to it as the Act (Hinchy, McDermott 2008).
Responsible applies to this event because as the definition from the text says ‘obeys the law and is socially conscious…’ the companies involved in this fraud were both disobeying the law, especially Livent. Improper financial statements are considered a crime and they had basically stolen from their investors/creditors, which is also considered a serious crime. Deloitte do not demonstrate responsibility since they were either not careful in checking the financial statements thoroughly. They could have possibly known the inaccuracy in Livent’s financial statements, but still signed them off again showing a lack of
The principle of vicarious liability is very controversial as it is quite broad, and the fact that personal fault on behalf of the employer is not required means that it is sometimes more difficult to attribute blame on big companies or corporations than individuals. However, there are many aspects of vicarious liability that make it suitable for its use. In nearly every case the employer is in the best position financially to compensate a claimant as they always have the ‘deepest pocket’. The whole purpose of the law of tort is to compensate the victims, the resources in question that enable the employer to have the ‘deepest pocket is provided through insurance.
To render justice case by case is the primary task of our courts. Other courts and branches of government also, the social and economic fabrics of our lives are impacted by court decisions. The justice that is done in individual cases helps and aids to bring order to the society in which we live. Parties who are before the court are impacted by our decisions. In criminal matters, court decisions determines whether the accused is guilty or not and if guilty will they suffer financially, be free or go to prison with the possibility of suffering the death penalty. In civil matters, the parties’ rights and their obligations to one another are determined in their court decisions. Future actions are dictated by court decision and can impact the parties’ possessions, finances and livelihood.
In negligence cases, it must be established that the defendant’s breach of duty has caused the damage to the claimant. This causal link between the fault of the defendant and the harm of the claimant is usually provided by the ‘but for’ test of causation. However, there are several problems related to the test, rendering its sufficiency to become questionable. This essay will first explain when and how the ‘but for’ test is applied. Then, it will discuss the advantages and disadvantages of the test using relevant cases. Lastly, it will conclude by determining whether the test is adequate or not.
According to the text, it says that “liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized. Principals are classified as disclosed, or undisclosed” (Roger, LeRoy, & Miller). “A partially disclosed principal is a principal whose identity is not known by the third party know that the agent is or may be acting for a principal at the time the contract is made” (Roger, LeRoy, & Miller). “An undisclosed principal is a principal whose identity is totally unknown by the third party, and the third party has no knowledge that the agent is acting in an agency capacity at the time the contract is made” (Roger, LeRoy, & Miller). In my paper, I will