ABSTRACT
Since a company is an artificial legal person, created under the Companies Act 1985, special considerations have to be made in relation to how it is to enter into contracts. First, this is because of the way in which the courts have interpreted the role of the registered company’s constitutional documents. This interpretation has the effect of limiting the company’s overall contractual capacity in contrast to the unlimited capacity of a natural person of full age. Secondly, the company’s articles of association may have limited the powers of those acting for the company or may have imposed certain procedures to be followed in relation to certain types of contract. Thirdly, as the company can only act through the medium of natural persons, the law of agency has to be developed and applied in all company transactions.
