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What is the capacity of corporation?
What Is Capacity? Capacity is the maximum level of output that a company can sustain to make a product or provide a service. Planning for capacity requires management to accept limitations on the production process.
What is the capacity of minors?
A minor is one who has not attained the age of 18, and for every contract, the majority is a condition precedent. By looking at the Indian law, minor’s agreement is a void one, meaning thereby that it has no value in the eye of the law, and it is null and void as it cannot be enforced by either party to the contract.
What does capacity mean in legal terms?
In contract law, a person’s ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to have soundness of mind.
What is the contractual capacity of a company?
‘Contractual capacity’ refers to a company’s legal ability to engage in an agreement with another party and be held liable to the terms of the contract. It is known that a company has a separate legal personality and is therefore capable of entering contracts with other parties for consideration.
Do minors have contractual capacity?
For a contract to be valid, all parties must have contractual capacity. Persons under the age of 18 have a limited capacity to contract. This means that contracts with minors are valid in some situations. Under common law, a contract entered into by a minor is generally voidable.
Can an agent be a minor?
Agent and principal are defined under Section 182 of the Indian Contract Act, 1872. According to this section any person can become an agent i.e. there is no need to have a contractual capacity to become an agent. Therefore, a minor can also act as an agent. But the minor will not be responsible to his principal.
What is mental capacity legal?
The Mental Capacity Act 2005 provides a statutory framework to empower and protect vulnerable people who may not be able to make their own decisions. It makes it ‘Capacity’ is the ability of a person to make decisions that may have legal consequences for themselves and/or for others affected by the decision.
What does the term capacity mean in business?
Depending on the business type, capacity can refer to a production process, human resources allocation, technical thresholds, or several other related concepts. No system can operate at full capacity for a prolonged period; inefficiencies and delays make it impossible to reach a theoretical level of output over the long run.
Which is the optimal capacity utilization rate for a company?
A rate of 85% is considered the optimal rate for most companies. The capacity utilization rate is used by companies that manufacture physical products and not services because it is easier to quantify goods than services. If demand in the market increases, it will raise the capacity utilization rate, but if demand decreases, the rate will fall.
How is capacity used in the manufacturing process?
Companies often use this capacity strategy, as it allows a company to ramp up production at a time when the demands on the manufacturing plant are not so great. If any issues occur during the ramp-up process, these can be dealt with so that when the demand occurs, the manufacturing plant will be ready.
Which is an example of a capacity level?
Assume, for example, ABC Manufacturing makes jeans, and that a commercial sewing machine can operate effectively when used between 1,500 and 2,000 hours a month. Capacity is the maximum output level a company can sustain to provide its products or services.