XYZ Ltd. was incorporated to hold the patent for a new product. The company is expecting to start its commercial production within the next two…
CA Foundation · Business Laws · MTP · January 2025
XYZ Ltd. was incorporated to hold the patent for a new product. The company is expecting to start its commercial production within the next two years. In the meanwhile, for timely installation, the company has placed the purchase order for plant and machinery with a down payment of 1 crore. Referring to the provisions of the Companies Act, 2013 examine, whether the company can go for acquiring the status of a dormant company?
Suggested Answer and Working Notes:
Where there is an agreement to sell goods on the terms that price is to be fixed by the valuation of a third party and that third party either does not or cannot make such valuation, the agreement is thereby avoided. However, a buyer who has received and appropriated the goods, must pay a reasonable price for them.
Topics: The Companies Act, 2013
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