Law · Corporate Law
Under modern corporate law framework (such as UK Companies Act 2006), can a third party enforcement claim succeed if a contract was ultra vires for the company?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Yes – the legal provisions protect third parties acting in good faith even if a contract is ultra vires.✓
- 2Yes – the principle of ultra vires does not exist in any legal system.
- 3No – directors never have authority to bind the company beyond its object clause.
- 4No – the contract is void ultra vires for the company.
Correct answer
Yes – the legal provisions protect third parties acting in good faith even if a contract is ultra vires.
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