5/11/2011 How does a company enter into a contract? Use of common seal:ss 32(1)(a),93(1)(b), Table A reg 114. Signature by authorised persons (agents):s 32(1)(b). Oral contracts by authorised persons(agents): s32(1)(c. Authority to contract Board of directors(Table A reg 82) Authority to borrow:Table A reg 81 Agents:when does an agent have authority to bind the principal(company)? Categories of authority of agents: Actual authority(express or implied) Ostensible or apparent authority Usual or customary authority 25/11/2011 2 3 How does a company enter into a contract? • Use of common seal: ss 32(1)(a), 93(1)(b), Table A reg 114. • Signature by authorised persons (agents): s 32(1)(b). • Oral contracts by authorised persons (agents): s 32(1)(c). 4 Authority to contract • Board of directors (Table A reg 82)  Authority to borrow: Table A reg 81 • Agents: when does an agent have authority to bind the principal (company)? • Categories of authority of agents:  Actual authority (express or implied)  Ostensible or apparent authority  Usual or customary authority