<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> In corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, articles of incorporation or in a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar founding documents . Acts attempted by a corporation that are beyond the scope of its charter are void or voidable . </P> <Ol> <Li> An ultra vires transaction cannot be ratified by shareholders, even if they wish it to be ratified . </Li> <Li> The doctrine of estoppel usually precluded reliance on the defense of ultra vires where the transaction was fully performed by one party . </Li> <Li> A fortiori, a transaction which was fully performed by both parties could not be attacked . </Li> <Li> If the contract was fully executory, the defense of ultra vires might be raised by either party . </Li> <Li> If the contract was partially performed, and the performance was held to be insufficient to bring the doctrine of estoppel into play, a suit for quasi-contract for recovery of benefits conferred was available . </Li> <Li> If an agent of the corporation committed a tort within the scope of his or her employment, the corporation could not defend on the ground the act was ultra vires . </Li> </Ol>

What is an ultra vires act within the context of corporate action