Duty of company in corporate law

... Table of Contents 1. Introduction 2 2. Body 3 2.1 Actual Authority: 3 2.2 Apparent or Ostensible authority 4 2.3 Indoor management rules 5 2.4 S128-129 6 3. Conclusion 9 1. Introduction More and more companies are formed to carry out business ventures inevitable cause the companies enter into contracts with outsiders. At the same time an important question arises as to which individuals are capable of entering into the contract for the company.1 Since a company is regarded as an artificial legal entity, there are two methods for individual entering into company. Using the "organic theory "where the company contracts directly in its own name is the first method. The second and more universal way is applying the law of agent, for example companies appoint officers or employees as agents to make contracts with outsiders. Under the second method, this essay will discuss the company's and third party's contractual liability when there is a financial loss from transaction. Based on four doctrines,

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