Oral agreements between companies remain governed by general contract law where no statutory provision requires corporate contracts to be written. The repealed requirement for written corporate contracts was neither saved nor re-enacted under the Companies Act, 2013, and the provision governing signature authority for company documents does not prohibit oral agreements. A pleaded assertion that a company representative was authorised to enter an agreement requires evidentiary adjudication; a plaint cannot be rejected at the threshold merely for lack of a written authority letter.
Oral agreements between companies remain governed by general contract law where no statutory provision requires corporate contracts to be written. The repealed requirement for written corporate contracts was neither saved nor re-enacted under the Companies Act, 2013, and the provision governing signature authority for company documents does not prohibit oral agreements. A pleaded assertion that a company representative was authorised to enter an agreement requires evidentiary adjudication; a plaint cannot be rejected at the threshold merely for lack of a written authority letter.
Note: It is a system-generated summary and is for quick reference only.
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