THE the events that the company caanot pay,



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limited liability is a corporate structure where the members of the company
cannot be held personally liable for the companies debts or liabilities.
Limited liability companies are entities that combine the characteristics of a
corporation and partnership. The availability of flow through taxation to the
members of an LLC. LLCs and corporation both possess some analogous features ,
the basic an terminology commonly associated with each type of legal entity. If
the LLC incurs debt or is sued, the members of the LLC are not bound to satisfy
the debt or pay the damages out of their own pocket. Therefore the LLC’s
members receive non-liability benefits similar to the owners of a corporation
without having to form a corporation. Additionally, LLC’s require fewer filing
documents and LLC owners are not forced to hold annual meetings  or record meeting minutes as required for
corporations.  Although a shareholders
liability for company actions is limited, the shareholders may still be liable
for their own acts. The directions of small companies are often required to
give personal guarantees of the companys debts to those lending to the company.
They will be liable for those debts in the events that the company caanot pay,
although the other shareholders will not be so liable.




A separate legal entity is a business that is
defined as detatched from another business or individual with the respect to
accountability. A separate legal entity can be set up in the case of
corporation or a limited liability company, to separate the actions of the
entity from those of the individual or other company. Under the concepts of
limited liability the owners of the company under normal circumstances are not
answerable or responsible for the obligations of the company, therefore in  making the owners or shareholders liable only
for the amount of their unpaid shares and not the obligations of the company.
The principle from the salamons case firmly established that a company has a
separate legal identity to that of its shareholders and has been applied over a
wide range of cases. The owners of a public house when in dispute with its
employees who had placed a picker on the premises transferred to a company. The
principles are set down in salomon vs salomon and co it  is known as the veil of incorporation. However
it is now been increasingly restricted in its application to an increased
extent by legislation in order to prevent the abuse of limited liability
protection and to ensure that liability for tax is not being avoided.



Perpetual succession in the company law is the
continuation of a coporations and the organizations existence despite the
death, bankruptcy, insanity, changes in membership or in the exit from the
business of any owner or member, any transfer of stocks etc.  perpetual succession is one of the common
factor shows us that the corporations 
legal existence is separate from those of its owners. This also shows us
that if there is any changes in the membership then the company doest not
affect the status of the company. If it happened in the case of death,
insolvency, insanity etc to any member of the company then it does not affect
the continuity of the company. Therefore the life of the company does not
depend upon the life of its members. Members may come and go but the company
keeps on going forever. It is the one of the fundamentals of a company
existence. Perpetual succession means that a companies life is not determined
by the longevity of its members, shareholders, promoters, directors, employees
or anyone else. If a shareholder  dies or
or the shareholders dies then only their shares in the company will be
transferred to new people.



The right to own property is said to be as
human rights. The right to own property is known to its existence and
interpretation. The rights consists that to demand to have property rights.
Everyone has the right to own property alone as well as in association with
others. No one shall be arbitrarily deprived of his property. The object of the
right to property as it is usually understood nowadays, consists of property
already owned or possessed, or of property acquired or to acquired  by a person through lawful means. Some
proposal also defend a universal right to private property in the sense of a
right of every person to effectively receive a certain amount of property .
every natural or legal person is entitled to the peaceful enjoyment of his
possessions. No one shall pe deprived of his possessions except in the public
interest and subject to the conditions provided by the law and by the general



There are several consequences which flow from
this as a company is liable for its own debts, as shareholders or members of
the company can’t be sued by its creditors. Another consequence is of limited
liability. A separate legal personality members liability are only limited by
guarantee or shares. The company is entirely isolated from mr Salomon, ad the
courts would stray from the principle of a separate legal personality. A
separate legal personality member’s liabilities are only limited by guarantee
or shares. Also when a company owns its own property the shareholders have no
direct rights to it. A company could be vicariously liable within a delict,
this could be because of the actions of directors and employees, however this
only the case if they are done within the scope of business. For companies
which are incorporated after the companies act they have full contractual
capacity unless they are restricted by articles. A company can also commit and
be convicted of a crime regardless of whether it is directors or employees,
with the understanding that it was undertaken within the course of company





      A condition term implies a requirement
stated in a contract, which must be met for other party to have the duty to
fill his or her obligations. Condition term is usually a contract or a
unilateral deed like a will, that of itself does nothing but that limits or
suspends or provides for the resolution of other term. A condition precedent is
one that must be satisfied before an obligation takes effect. A condition is a
agreement which regulates what the parties have a mind should be done.
Conditions sometimes suspend the obligations as when it is to have no effect
until they are fulfilled. The conditions rescind the contract. A condition may
modify the contract. The condition is made in consonance with the law. A
consistent condition is one which agrees with other parts of the contract.



      A warranty term has various term but it
is said that a guarantee or promise which provides assurance by one party to
the other party that specific facts or conditions are true. A warranty is the
form of a contract, where some warranties run with products so that
manufacturer makes the warranty to a consumer with which the manufacturer has
no direct contractual relationship. A warranty may be express or implied
depending on whether the warranty is explicitly provided . Warranty also term
that a particular fact is true at one point in time or that the fact will be
continue in the future. A warranty is usually a warranty against detects in
materials and workmanship that has no time limit to make a claim rather than a
warranty that the product will perform for the lifetime of the buyers. The
actual time that product can be expected to perform is normally determined by
the custom for products of its kind used the way the buyer uses it. Warranty
data consists of claims data and supplementary data. Claims data are the data
collected during the servicing of claims under warranty and supplementary data
are additional data such as production and marketing data. This data can help
determine product reliability and plan for future modifications.



      The exclusion term is a term in a
contract that seeks to restrict the rights of the parties to the contract.
There may be various methods in exclusion such as true exclusion, limitation, time
limitation etc. True exclusion recognize a potential breach of contract, and
then excuses liability for the breach. Limitation means that there is limit on
the amount that can be claimed for a breach of contract. Time limitation
usually states that an action for a claim must be commenced within a certain
period of time. Exclusion is a term in a contract which intends to exclude one
of the parties from the liability or limit the persons liability to specific
listed conditions , circumstances or situations. It can be inserted into a
contract which aims to exclude or limi ones liability.