Organisation law---contracts and shares Essay Example | Topics and Well Written Essays - 750 words

Organisation practice of law---contracts and shargons - Essay ExampleAdvise Bob.The licit text that regulates the various activities of companies across Australia is the Corporations Act 2001 the case law is also applicable on issues, which are not particularly regulated by the Australian law especially the above legislative text , or those which have been already examined and evaluated by the Courts.At the first level, a come with is a recognise legal entity, which means that it has the responsibility of the actions developed in its name (Salomon v Salomon & Co 1897, Ander Transport Pty Ltd v Brambles Ltd (2004) the individuals that participate in a company need to conserve the rules set by the company law the principles of common law may also be applicable furthermore, the members of a company have to follow the rules included in the companys constitution which is considered as a contract among the company and its members (CA s140(1)). The company as a legal entity can e nter contracts with individuals or other companies however, the company is an schmaltzy person and cannot enter a contract by itself it is represented by individuals, board of directors or agents (Lennards Carrying Co v Asiatic Petroleum 1915, Royal British Bank v Turquand (1856)) the contracts of companies with third parties (outsiders) are regulated in the section 129 of Corporations Act 2001. Because of its nature as a separate legal entity, a company can be held liable for the alter that have been caused to outsiders because of the violation of the terms of contracts signed between them and the particular company however, the members and the officers of the firm may be hold liable for the amount paid as compensation or losses to outsiders in the context described above referring especially to the case that the damages to outsiders resulted by the unfair conduct of the companys affairs.In regard to the rights and the obligations