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Good day sir,
I have a question regarding the following paragraph from BPP Study Text.
“If an outsider makes a separate contract with the company and that contract contains no specific term on a particular point but the constitution does, then the contract is deemed to incorporate the constitution to that extent.”
Sir, i can’t understand how can it happen that a point in constitution fills a missing point in a contract? Is there any example?
Thanks in advance.
I’m not aware of any cases to illustrate that but I imagine that the principle only applies when considering the company’s position. If there is, within the company’s constitution, some specific clause that is applicable to the contract now being considered, then the company is not able to ignore that (say) restriction
Any innocent third party shall not be affected by such a restriction “Nothing in a company’s constitution shall call into question the validity of any contract entered into by that company”
So the innocent third party is freely able to ignore that restriction … but the company cannot ignore it
Does that answer it?
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