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JAMB Commerce 2004 Question 30

Question 30

Business Units

An action taken by a company outside its object clause is regarded as

  1. A.ultra vires
  2. B.a trespass
  3. C.uberrima fides
  4. D.caveat emptor
Show the answer and explanation

Answer: A (ultra vires)

Explanation

Ultra vires means 'beyond the powers': an act outside the objects clause of the memorandum is beyond the company's legal powers.