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Ultra Vires

Dictionary of Terms and Phrases Used in American or English Jurisprudence · Benjamin Vaughan Abbott · 1879

Dictionary of Terms and Phrases Used in American or English Jurisprudence

Beyond the powers. This phrase is much used in the modern law of corporations to indicate the invalidity of acts done in the name of corporations which exceed the corporate powers. It is found used in a twofold way. An act is said to be ultra vires when it is not within the scope of the powers of the corporation to perform it, under any circumstances or for any purpose. An act is, also, sometimes said to be ultra vires with reference to the rights of certain parties, when the corporation is not authorized to perform it without their consent; or with reference to some specific purpose, when it is not authorized to perform it for that purpose. And the rights of strangers dealing with corporations may vary, according as the act is ultra vires in one or the other of these senses.

See Miners' Ditch Co. v. Zellerbach, 37 Cal. 543; McPherson v. Foster, 43 Iowa, 48, 65.