Cause Death – Obituary News : Title: Notable Legal Change: Preincorporation Contracts Can Now Be Ratified under CAMA Section 96
Introduction
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In a significant legal development, the passing of the Companies and Allied Matters Act (CAMA) has brought about a change in the common law regarding preincorporation contracts. Previously, such contracts could not be ratified; however, Section 96 of the CAMA has now resolved this issue. This article explores the implications of this change and its potential impact on business transactions.
Background
Under common law, preincorporation contracts were considered unenforceable and incapable of ratification. This legal principle was firmly established by various cases, including the well-known Kelner v. Baxter ruling. However, with the enactment of the CAMA, the position under common law is no longer applicable. The inclusion of Section 96 in the CAMA has rectified this long-standing legal limitation.
Implications of CAMA Section 96
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CAMA Section 96 provides a new framework for the ratification of preincorporation contracts. This means that contracts entered into on behalf of a company before its incorporation can now be ratified, thus granting them legal enforceability. This development brings greater certainty and clarity to business transactions, as parties can now rely on the ability to rectify and enforce agreements made during the preincorporation stage.
The inclusion of Section 96 in the CAMA represents a significant departure from the previous legal landscape. It acknowledges the practical realities of business operations and the need for flexibility in legal arrangements. This change is expected to have a positive impact on commercial activities, encouraging investment and promoting economic growth.
Biography or Legacy of the Deceased
While the focus of this article is on the legal change brought about by CAMA Section 96, it is essential to acknowledge the passing of an individual mentioned in the tweet. Unfortunately, no information is available regarding the deceased’s biography or legacy. Regardless, their passing serves as a reminder of the fleeting nature of life and the importance of staying informed about legal developments that shape our society.
Conclusion
The passing of the Companies and Allied Matters Act (CAMA) has introduced a significant change in the legal landscape regarding preincorporation contracts. With the inclusion of Section 96, these contracts can now be ratified and enforced, overturning the previous common law position. This development is expected to provide greater certainty and flexibility in business transactions, promoting economic growth and encouraging investment.
While this article does not provide details about the deceased’s biography or legacy, their passing serves as a reminder of the impermanence of life. It is crucial to stay informed about legal changes that impact our society, as they have far-reaching implications for businesses and individuals alike..
At Common Law, Preincorporation contract can not be ratified. Several cases like Kelner V. Baxter attest to this fact. However with the passing of Companies and Allied Matters Act (CAMA), the position under common law is longer the law. Section 96 of the CAMA has now resolved it.
— Babajide Oloko (@babajide_oloko) January 7, 2024
Condolences
@babajide_oloko said At Common Law, Preincorporation contract can not be ratified. Several cases like Kelner V. Baxter attest to this fact. However with the passing of Companies and Allied Matters Act (CAMA), the position under common law is longer the law. Section 96 of the CAMA has now resolved it.
