Legal Terms: Ultra Vires & Vis Major

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Questions and Answers

A company's Memorandum of Association (MOA) specifies that the company can only invest in technology firms. Which action would most likely be considered ultra vires?

  • Investing in a telecommunications company.
  • Investing in a new software company.
  • Investing in a company that manufactures computer hardware.
  • Investing in a retail chain. (correct)

Which of the following scenarios exemplifies the principle of volenti non fit injuria?

  • A person is injured at a baseball game by a foul ball while sitting in an unprotected area, with knowledge of the risk. (correct)
  • A person is injured due to faulty brakes while driving a car that they regularly maintain.
  • A pedestrian is hit by a car while crossing the road.
  • A homeowner slips and falls on an icy patch on their driveway due to a neighbor's faulty sprinkler system.

A new law requires all businesses to provide health insurance to their employees. A business owner refuses compliance, stating they were unaware of the new law. Which legal principle would likely be invoked against the business owner?

  • _Lex loci actus_
  • _Ignorantia juris non excusat_ (correct)
  • _Lex nil facit frustra_
  • _Quod constat clare non debet verificare_

A contract stipulates that delivery must occur in New York. The seller attempts to argue that the contract should be interpreted under different standards. Which legal principle is most directly applicable?

<p><em>Lex loci actus</em> (D)</p> Signup and view all the answers

In legal proceedings, which principle suggests that a court should interpret a law in a way that gives effect to all its parts, avoiding interpretations that render any part of the law useless or without effect?

<p><em>Lex nil facit frustra</em> (A)</p> Signup and view all the answers

During a trial, a key document is presented as evidence that is so clear and unambiguous that its meaning is evident upon simple examination. Under which legal principle would further attempts to question its authenticity or meaning be deemed unnecessary?

<p><em>Quod constat clare non debet verificare</em> (A)</p> Signup and view all the answers

Two parties are involved in an illegal gambling operation. When a dispute arises, one party attempts to sue the other for breach of contract. Under which legal principle would the court likely refuse to hear the case?

<p><em>In pari delicto</em> (A)</p> Signup and view all the answers

A lower court's decision is appealed, and the appellate court decides to hear the case again, disregarding the lower court's findings and conclusions. What is this type of hearing called?

<p>Trial <em>de novo</em> (B)</p> Signup and view all the answers

A thief sells stolen goods to an unsuspecting buyer. Under which legal principle does the buyer not gain ownership rights to the goods, even if they paid for them in good faith?

<p><em>Nemo dat quod non habet</em> (B)</p> Signup and view all the answers

Which scenario exemplifies the application of the legal principle pari passu in bankruptcy proceedings?

<p>All creditors of the same class receive the same percentage of the amount owed to them. (B)</p> Signup and view all the answers

In contract law, what is the significance of quid pro quo?

<p>It describes the requirement for mutual consideration, indicating that each party must provide something of value. (B)</p> Signup and view all the answers

A judge adjourns a court case without setting a date for resumption. What is the legal term for this type of adjournment?

<p><em>Sine die</em> (D)</p> Signup and view all the answers

In contract negotiations, what does 'sine qua non' typically refer to?

<p>An indispensable condition or element. (A)</p> Signup and view all the answers

During a severe storm, a tree on private property falls and damages a neighbor's car. The property owner had taken reasonable care to maintain the tree. Which legal concept might be invoked to explain the event?

<p><em>Vis major</em> (A)</p> Signup and view all the answers

Which of the following best explains the concept of Vis major?

<p>An irresistible, overwhelming force of nature that could not have been prevented by reasonable care. (B)</p> Signup and view all the answers

What is the significance of 'free consent' in the context of Volenti non fit injuria?

<p>Consent must be genuinely and voluntarily given, without any undue influence or misrepresentation. (A)</p> Signup and view all the answers

What is the relationship between 'intra vires' and 'ultra vires'?

<p>'Ultra vires' refers to actions beyond the legal power of a corporation, while 'intra vires' refers to actions within its legal power. (B)</p> Signup and view all the answers

Which statement accurately reflects the effect of an 'ultra vires' act by a corporation?

<p>It is considered invalid and may be challenged in court. (D)</p> Signup and view all the answers

If a cricket player is injured during a match, knowing the risks involved, which legal concept might prevent them from suing for those injuries?

<p><em>Volenti non fit injuria</em> (C)</p> Signup and view all the answers

Under what condition can a company be found to be acting ultra vires?

<p>When it acts beyond the powers specified in the MOA. (A)</p> Signup and view all the answers

Flashcards

Ultra vires

Beyond the scope of power or authority; an unauthorized act.

Vis major

A 'superior force'; an irresistible, natural occurrence.

Volenti non fit injuria

"To a willing person, no injury is done"; accepting a known risk.

Ignorantia juris non excusat

"Ignorance of the law does not excuse."

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Lex loci actus

The law of the place where the act was performed governs a legal claim.

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Lex nil facit frustra

The law does nothing in vain; every part serves a purpose.

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Quod constat clare non debet verificare

Something so clear it requires no further verification.

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In pari delicto

When both parties are equally at fault, neither can claim damages.

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De novo

Fresh; new; starting the case over completely.

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Nemo dat quod non habet

"No one can give what they do not have."

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Pari passu

At an equal rate, on equal footing; all are treated equally.

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Quid pro quo

Something for something; mutual consideration.

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Sine die

For an indefinite period with no set date to reconvene.

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Sine qua non

An indispensable and essential condition.

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Study Notes

  • These notes cover various legal terms and doctrines.

Ultra Vires

  • Refers to actions beyond the scope of one's power or authority.
  • An unauthorized act by an officer or corporate body exceeding its capacity is invalid.
  • If an officer or body acts within its powers, it is 'intra vires.'
  • Ultra vires acts lie beyond a corporation's authorized actions, especially those not in its corporate charter.
  • The term originates from a Latin phrase meaning beyond the power.
  • It is the opposite of acting under proper authority, which is 'intra vires'.
  • A company's powers are limited to the objectives specified in its Memorandum of Association (MOA).
  • Provisions regarding acquiring business, profit sharing, and financial gifts should be defined in the MOA.
  • Actions beyond the MOA's specified powers are ultra vires and considered ineffective, even if ratified by all members.
  • Charitable contributions must align with the object clause in the MOA.

Vis Major

  • A greater or superior force, also an irresistible force.
  • Refers to a loss from a natural cause that couldn't be prevented with prudence, diligence and care.
  • It is also known as vis divina or superior force.
  • This covers inevitable accident or act of God.
  • Insurance policies may or may not cover damages from vis major.
  • It is a Latin term for "superior force," describing natural events causing damage that are unpreventable by humans.
  • Examples include hurricanes, tornadoes, floods, and earthquakes.
  • Synonymous terms are act of God, natural disaster, and force majeure.
  • Commonly used in contracts to exclude liability for events beyond control.

Volenti Non Fit Injuria

  • Translates to "to a willing person, no injury is done" or "no injury is done to a person who consents."
  • Under common law, if someone willingly places themselves in a risky position, knowing harm may result, they cannot later sue if harm occurs.
  • An injury in a cricket match exemplifies volenti non fit injuria.
  • Essential elements include:
    • Free Consent
    • Consent must be voluntary and not obtained by fraud or compulsion
    • The Defendant should not be Negligent at all.
    • Implies that mere Knowledge does NOT IMPLY Assent/consent

Ignorantia Juris Non Excusat

  • Ignorance of the law is not an excuse.
  • A legal principle specifying that unawareness of a law does not absolve a person from liability for violating it.

Lex Loci Actus

  • The law of the place where the act was performed which gave rise to the legal claim.

Lex Nil Facit Frustra

  • The law does nothing in vain.
  • This law does not fail in dispensing justice.
  • Interpretation: Law shouldn't be interpreted to render any part useless.
  • Legal application to support law interpretation in line with intended purpose.

Quod Constat Clare Non Debet Verificare

  • Means that which is quite clear needs no verification.

In Pari Delicto

  • It means when both parties are equally at fault.
  • Legal doctrine that prevents plaintiffs from recovering damages if they contributed to the wrong.
  • This concept applies to two or more parties equally at fault for a crime or tort.
  • It is used in contract, tort, and criminal law.
  • It is a equitable defense; Courts are reluctant to award relief to plaintiffs with unclean hands.

De Nova

  • Refers to "Fresh' or "New".
  • A de nova contract can be substituted in place of the old one.
  • Deciding issues without reference to previous legal conclusion or assumption made by a previous court.
  • An appellate court hearing a case “de novo” may refer to the lower court 's record to determine the facts, but will rule on the evidence and matters of law without deferring to that court's findings.
  • Can occur when a court decides an issue without deference to a previous court's decision.
  • Trial de novo is when a court decides all issues as if the case was being heard for the first time.
  • Used when an appellate court does not accept the factual finding of the lower court

Nemo Dat Quod Non Habet Law

  • "No one can give what they do not have".
  • A person cannot transfer ownership of something if they do not own it.
  • Purchasing from a non-owner does not grant ownership rights to the buyer.
  • Exceptions:
    • Sale made under a voidable title or doctrine of estoppel
    • Buyer continues to possess the goods.
    • Owner has acted in a way that would lead the buyer to change positions.
  • Estoppel: If the original owner didn't prevent the sale of the goods, the buyer may get a good title
  • Sale by a finder: If the finder of lost goods can't find the owner and the owner won't pay the finder, the finder can sell the goods.

Pari Passu

  • Describes situations where all people or things are treated equally
  • This refers to an equal rate, and being on equal footing.
  • It is used in inheritance situations where everyone receives an equal share.
  • Also used in liquidation where all parties are paid equally.

Quid Pro Quo

  • Means consideration or something for something.
  • It is a must for a contract to be valid.
  • Agreement for a reciprocal exchange of goods or services.
  • Courts may render a business contract void if it appears unfair or one-sided.

Sine Die

  • Means for an indefinite period.
  • Adjournment of the house sine die means the house is adjourned until further notice.

Sine Qua Non

  • Indicates an indispensable and essential action, condition, or ingredient.
  • Example: For a contract to be valid the parties must be competent.

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