The question (15 marks)
Explain the doctrine of ultra vires. How far did the practice of drafting wide objects clauses succeed in defeating it, and what is the position of a lender who advances money for an ultra vires purpose? (15 marks)
MU Module 1, doctrine of ultra vires.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 1 · Incorporation, Prospectus and Securities of Company Law.
Authorities you will need
- Ashbury Railway Carriage and Iron Company Limited v. Riche (1875) L.R. 7 H.L. 653
- Cotman v. Brougham
- Bell Houses, Ltd. v. City Wall Properties, Ltd. (1966) 2 All E.R. 674
- Re Introductions, Ltd.; Introductions, Ltd. v. National Provincial Bank Ltd. (1969) 1 All ER 887
- In re (Jon) Beauforte (London) Ltd. (1953) Ch. 131
- In re German Date Coffee Company (1882) 20 Ch. D. 169
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.