MODUS OPERANDI:
Often shortened to M.O., the Latin term ‘modus operandi’ describes
someone’s usual way of operating. It could refer to either an individual’s
typical behavior or the routine processes of an organization. By looking at
patterns of working behavior over time, you can make better predictions for
the future. This is useful not only in understanding how businesses operate,
but also in investing.
The Introduction to Doctrine of Ultra Vires:
An act of the company must not be beyond the object clause otherwise it will
be ultra vires and therefore, void and cannot be ratified even if all the
members wish to ratify. This is called the doctrine of ultra vires.
Intra Vires:
Intra vires refers to acts that fall within the legal powers and capacity of a
corporation, as defined by its memorandum of association and articles of
association.
"Vires" comes from the Latin word for "powers". So intra vires describes
corporate actions made within the corporation's legal powers.
The doctrine of Caveat Emptor:
or "let the buyer beware", means that the buyer is responsible for inspecting
goods carefully before purchasing and the seller has no obligation to disclose
defects unless asked.
Caveat venditor:
Caveat venditor is a Latin term meaning “let the seller beware,” in contrast to the
more widely known saying caveat emptor (let the buyer beware). The principle of
caveat venditor cautions that the seller is responsible for any problem that the
buyer might encounter with a service or product.
Nemo dat quod non habet’ :
The Latin phrase ‘Nemo dat quod non habet’ means ‘no one can give what
they do not have’. This rule is commonly referred to as the Nemo Dat Rule.
Nemo Dat is the legal principle that a person who does not have adequate
ownership of goods or property cannot transfer the ownership of those goods
or that property to someone else.
The doctrine of utmost good faith:
(also known as "uberrima fides") is a legal principle in company law that
requires parties to act with the highest level of honesty, transparency, and
fairness in their dealings. This doctrine is particularly important in insurance
contracts and other commercial relationships where trust and confidence are
essential.
In the context of company law, the doctrine of utmost good faith requires:
1. Directors and officers to act honestly and in the best interests of the
company.
2. Shareholders to disclose all material information and not mislead the
company or other shareholders.
3. Companies to disclose accurate and timely information to stakeholders,
including financial statements and other reports.