what is company law

Question 1

what is a company?

Answer 1

a company is it’s own legal person, separate from it’s members. a company can own property, sue or be sued, and enter into contracts independently.

Question 2

types of companies

Answer 2

1. company of persons
2. company of capital

Question 3

types of companies of people

Answer 3

1. partnerships
2. limited partnerships

Question 4

what is a partnership?

Answer 4

2 or more people opening a company. They share joint and unlimited liabilities for debts

Question 5

what is a limited partnership?

Answer 5

includes general partners (with unlimited liability) and limited partners (liable only for their part of the company)

Question 6

types of companies of capital

Answer 6

1. limited liability company
2. joint stock company
3. limited partnership by shares
4. single member company

Question 7

what is a limited liability company?

Answer 7

members liability is limited to their shares in the company. it has a minimum of 2 members and a maximum of 50

Question 8

what is a joint stock company?

Answer 8

ownership is divided into shares; shareholders are only liable for their value of shares

Question 9

what is limited partnerships by shares?

Answer 9

combines features of llc and joint stock company

Question 10

what is a single-member company?

Answer 10

owned and operated by a single shareholder. it’s treated like an llc

Question 11

general elements of the company contract

Answer 11

1. consent
2. capacity of the party
3. lawfulness

Question 12

what is consent?

Answer 12

the contract must be made by the free will/consent of the party

Question 13

what is the capacity of the parties?

Answer 13

age and sound mind

Question 14

what is lawfulness of object?

Answer 14

Refers to the subject matter or goal of the contract

Question 15

what is lawfulness of cause?

Answer 15

Refers to the reason or purpose behind entering into the contract.

Question 16

formal elements of the contracts

Answer 16

1. contract should be made in writing
2. the contract should be published within 15 days after registration

Question 17

types of nulitty

Answer 17

1. relative
2. absolute
3. specific nullity

Question 18

what is relative nullity?

Answer 18

it protects the interest of person, if the consent of any party members is through mistake, fraud, or force the contract is voidable. same for lack of capacity

Question 19

how does relative nullity affect company of persons?

Answer 19

the voidance of contract will lead to nullity of the whole contract and dissolution of company

Question 20

how does relative nullity affect the company of capital

Answer 20

voidance of the contract for one member doesn’t affect the existence of the company

Question 21

what is absolute nullity?

Answer 21

protects interests of society, a legal defect in a contract or legal act that makes it automatically invalid because the object is unlawful or the company is missing a general/specific element

Question 22

what is specific nullity?

Answer 22

for specific circumstances