Companies Act 2014 section 42

Form of contracts

Section 42 sets out how contracts may be made on behalf of a company, who is bound by them, and how they may be changed or brought to an end.

• Where a contract between individuals would need to be in writing and under seal, the company equivalent must be in writing under the company's common seal.
• Where a contract between individuals would need to be in writing and signed, the company equivalent must be in writing and signed by any person acting under the company's authority, whether express or implied.
• Where a contract between individuals could validly be made verbally without being reduced to writing, it may be made verbally on behalf of the company by any person acting under its authority, whether express or implied.
• A contract properly made under these rules binds the company and its successors, as well as all other parties, and may be varied or discharged in the same manner in which it was made.