Legalnaija Law Tip

Where a director enters into a contract in the name of or purporting to bind the company, it is the company, the principal, which is liable on it, not the director.

Therefore, when going into agreements on behalf of your company, be sure to understand this principle. 

Note: There is a provision of the CAMA that allows the court to lift the veil of the company and reach directly to the directors. E.g. fraud 

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