Explain the reason why a third part dealing with the company may concern himself with the doctrine of ultra vires. (6 marks) – The Companies Act (Cap.486) of the Laws of Kenya imposes certain statutory limitations and obligations on directors.

A third party may concern himself with the doctrine of ultra vires when dealing with the company as any such contracts will be considered void and unenforceable.
It is imperative that third parties examine the contents of the memorandum of association.
 Third parties must be aware of the contents of the memorandum.
 Any transaction outside the objects clause will be ultra vires the company.
Such a contract is void and cannot be ratified and nothing can be done to render it intra vires.

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