... this case the company had been carrying out business making items such as railway wagons, signals and other items used on the railway. However they were not involved in the construction of it such as building r the cutting etc. The director of the company had decided to expand into this and also purchase a railway concession, which entitles them to build a railway. The company contract with Riche to build a railway. The shareholders later decided this was a risky venture in terms of finance. Therefore the company repudiated their contract with Riche, who then sued for damages. The company argued that the contract was an ultra-vires and he could not enforce, it was a void. The company cannot perform an act that is not in the slope of their object clause. However often described the term ultra-vires in not strictly to say that the act is beyond the ...

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