Law · Company Law
Is Olympus Plc bound by the contract Juno made with Mercury Co?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Yes, but only if the board subsequently ratifies the contract by a 75% majority.
- 2No, because a special resolution of members is required for high-value contracts.
- 3Yes, if Juno was acting within the 'usual authority' typically associated with a director in that position.✓
- 4No, individual directors never have the power to bind the company.
Correct answer
Yes, if Juno was acting within the 'usual authority' typically associated with a director in that position.
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