subject
Law, 13.09.2021 16:40 alisa1600000

Bouwer Inc specialises in providing project and construction management services. The company’s registered office is situated in Pretoria, in the Gauteng Province. Riaan, Charles, Aubrey and William are the directors of Bouwer Inc. To ensure that the company does not deviate from its core business of providing project and construction management services, the following clauses were inserted into the Memorandum of Incorporation: "Capacity • The company may not participate in any trades or transactions other than for purposes of the provision of project and construction management services. • The company may not enter any transaction for the purchase or sale of any immovable property outside the borders of the Gauteng Province. Bouwer Inc has a substantial amount of cash in its bank account which does not yield much interest as a result of the low interest rate that Bouwer Inc’s bank offers. While on holiday in Port Elizabeth, in the Eastern Cape Province, William spotted a beach house for sale and thought it would be a great investment for Bouwer Inc. Without the knowledge of the shareholders and directors, William immediately arranged an appointment with the owner of the beach house, Mr Pietersen, and concluded a contract for the purchase and sale of the beach house at a price of R800 000 on behalf of Bouwer Inc. When William arrives back at the office and informs the other directors about the transaction they are not impressed. Advise the board of directors of Bouwer Inc whether the company can escape liability for performance in terms of the contract on the ground that the transaction falls beyond the capacity of the company.

ansver
Answers: 1

Another question on Law

question
Law, 08.07.2019 06:10
How has naturalization made an impact or change in society, government, and the political process?
Answers: 3
question
Law, 11.07.2019 05:20
Vehicle #1 skidded 50 ft before impact with a drag factor of 0.80, how far from impact was vehicle #1 when vehicle #2 first began to accelerate from being stopped?
Answers: 2
question
Law, 15.07.2019 03:10
What do floor leaders in congress do
Answers: 1
question
Law, 15.07.2019 20:30
Which general staff member is responsible for ensuring that assigned incident personnel are fed and have communications, medical support, and transportation as needed to meet the operational objective?
Answers: 2
You know the right answer?
Bouwer Inc specialises in providing project and construction management services. The company’s regi...
Questions
question
Biology, 21.04.2020 17:58
question
Mathematics, 21.04.2020 17:58
Questions on the website: 13722361