... enter in to the contract on behalf of the company i.e. SCL but nothing has been mentioned in the case about the authority given to Eddie about entering in to a contract. So I assume that Eddie who entered in to the contract on behalf of FCD had an authority to enter into the contract under s198A of Corporations Law. The contract entered into by Amy was against the Object clause of the Company's Constitution where it was stated that the company deals only in genuine products. It was also against clause 6 which states that no director should engage in an activity that breaches the company's constitution and /or are prejudicial to the reputation and interests of the company. Initially under s125 (2) of Corporations Law such contracts which are against the company's object clause restricts the business activities. [Ref case: Ashburry Railway Carraige and Iron Co. v Riche (1875) LR ...

See this essay or coursework document in full right now