Ultra Vires Question Forum
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Ultra Vires Question
Confused about Ultra Vires in America----I know w/ the British rule, the actions will be void, but what happens in America?
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- Posts: 34
- Joined: Wed Oct 17, 2012 12:49 am
Re: Ultra Vires Question
Most states have passed statutes repealing ultra vires as a defense. This is primarily to protect contractors and creditors from having otherwise legitimate business suddenly voided based on an archaic legal rule.
For example, NY BCL § 203 http://law.justia.com/codes/new-york/20 ... cle-2/203/
For example, NY BCL § 203 http://law.justia.com/codes/new-york/20 ... cle-2/203/