8. Competency of corporations as principals.

8.     Competency of corporations as principals.

At common law it is an incident to a corporation created by Royal Charter1 to use its common seal for the purpose of binding itself to anything to which a natural person could bind himself and to deal with its property as a natural person might deal with his own2. If the powers of the corporation are limited by the Charter, those limits are enforceable by a declaration of the court3.

Corporations incorporated by statute4 are subject to the common law doctrine of ultra vires, that is, what is not expressly or