Multiple choice

Which of the following statements is correct?

  1. If the contract is inconsistent with the public documents, the person contracting will not be prejudiced by irregularities that may set the outdoor working of the company.

  2. If the contract is consistent with the public documents, the person contracting will not be prejudiced by irregularities that may set the indoor working of the company.

  3. The doctrine of indoor management seeks to protect the company against an outsider.

  4. The doctrine of ultra vires seeks to protect the outsider against internal irregularities of the company.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the contract is consistent with the public documents, the person contracting will not be prejudiced by irregularities that may set the indoor working of the company.

Keep practicing — related questions