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CONTINENTAL CHEMISTS LTD VS DR C.A IFEAKANDU

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CONTINENTAL CHEMISTS LTD VS DR C.A IFEAKANDU

Legalpedia Citation: (1966-01) Legalpedia 20759 (SC)

In the Supreme Court of Nigeria

Holden at Abuja

Thu Jan 13, 1966

Suit Number: SC 260/1964

CORAM


BAIRAMIAN JUSTICE, SUPREME COURT

ONYEAMA JUSTICE, SUPREME COURT

AJEGBO JUSTICE, SUPREME COURT


PARTIES


CONTINENTAL CHEMISTS LTD

APPELLANTS 


 DR C.A IFEAKANDU

RESPONDENTS 


AREA(S) OF LAW


COMPANY LAW – OBJECT CLAUSE- DOCTRINE OF ULTRA VIRES

 

 


SUMMARY OF FACTS

The above company sued the doctor for breach of contract, and has appealed from [the dismissal of its suit: (Warri No. 3/1963 decided on 28 August, 1963).

 

 


HELD


That appellant cannot hold the defendant in breach of a contract to serve in a business which they themselves have no powers to carryon.

 

 


ISSUES


Whether the appellant can hold the defendant responsible for breach of contract that is not in their objects Clause?

 

 


RATIONES DECIDENDI


ULTRA VIRES PRINCIPLE


 After a company is incorporated, the memorandum becomes the charter of its activities and at the same time defines its field of operation. Apart from’ statutory powers, anything done

 


CASES CITED


Ashbury Railway Carriage-and Iron Co. v. Riche (1875) L.R. 7 H.L. 653

Attorney-General v. Great Eastern Railway Co. (1880) 5 App. Cas. 473

In re German Date Coffee Co. (1882) 20 Ch.D, 169

Bell Houses Ltd. v. City Wall Properties Ltd. (1965) reported in 3 W.L.R. for Nov. 5

 

 


STATUTES REFERRED TO


Not Available

 


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