Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Eco Ltd (Eco) has been set up as a joint venture by Enviro Ltd (Enviro) (a non-profit company that promotes education and research into environmentally
Eco Ltd (Eco) has been set up as a joint venture by Enviro Ltd (Enviro) (a non-profit company that promotes education and research into environmentally friendly products) and WP Pty Ltd (which operates a waste paper collection service). Eco's constitution restricts its activities to the production of recycled paper products and “such activities as are reasonably incidental thereto”. Eco enters into a contract to provide a glass and paper collection service to the City of Kuarna. Enviro had previously refused to deal with this Council because of its poor environmental record.
Does the contract breach the objects clause in Eco’s constitution; and if it does, what are the consequences when a third party is involved — ie, can a member get a concluded contract set aside?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Enviro as a shareholder of Eco may have limited grounds to have the contract set aside based on the breach of Ecos objects clause in its constitution ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started