Corporate Capacity

Corporate capacity refers to a company's ability to enter into legal agreements and conduct business. It essentially means that a corporation has the authority to act, make contracts, and engage in transactions as outlined in its articles of incorporation and relevant laws. A corporation's capacity can be limited by its purpose, the powers granted to it, or restrictions imposed by law. If a company exceeds its capacity, those actions might not be legally binding. Understanding corporate capacity helps ensure that companies operate within their legal rights and obligations.