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Contractual obligations of the company in general meeting

In company law usually the difficulties in determining whether a putative contractual obligation is binding on the company are matters of agency. The issue is whether the person who purported to commit the company to the contract had the requisite authority under the common law rules of agency as modified for companies by statute. At one time it was necessary also to consider whether the contract was beyond the capacity of the company under the ultra vires doctrine, which limited the capacity of the company to the range of business activities defined in the objects clause of its memorandum. Now, following the Companies Act 1989, the capacity of the company is no longer limited in this way to a certain range of activities.