Section 46 provides that a company can, in general, contract
in the same form as an individual. Thus, a contract which, if made between
private persons, is required to be in writing, may be made on behalf of the
company also in writing. It should be signed by a person acting under the
express or implied authority of the company. Such contracts may also be varied or
discharged in the same manner. Also, a contract which would be valid if made between
private persons although made orally or by parol on behalf of the company by
any person acting under express or implied authority. Such contracts could also
be varied or discharged in the same manner.
Some contracts are required to be under seal and, therefore,
s.147 requires every company incorporated under the Act to have a common seal
upon which its name should be engraved in legible characters.
Under s.50, a company may obtain power through its
articles to have an official seal, for use outside India. This is in addition
to a common seal.
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