UBERRIMA the negotiation of certain contracts it is essential, in order that the contracts should be valid when concluded, that each of the parties thereto should disclose to the other full information as to matters which are not known to the other, and which should be known by him in order that he may have the means of forming a correct judgment as to the risk, nature, and conditions of the proposed contract. Of such contracts are those for the sale of land, the allotment of shares in a company, and marine, fire, and life insurance. The phrase is thus used to express the perfect good faith, concealing nothing, with which such contracts must made.
ULTRA VIRES.—The Dame applied to an important and somewhat technical legal doctrine, applicable particularly to CORPORATIONS (q.v.). A corporation being always specially created for some express object, its powers are reasonably limited to acts incidental to the attainment of that object. The extent of the powers of a particular corporation, such as a com pany registered under the Companies Acts, is defined in its memorandum of association. Such acts as it may do beyond that definition are ultra vices, and are consequently illegal. A corporation of any other class would also
find the limitations upon its powers contained in the instrument which creates it—a charter or a statute for example.
UNDERWRITING.—This term signifies an insurance, whether it be against a maritime risk or some other risk or contingency made the subject of a transaction at Lloyds, or against the risk of the public failing to respond to an issue of the shares or debentures of a company. The term is derived from the fact that an insurance contract of this class is usually "under written," or subscribed at its foot, by the persons who undertake the risk. It is perfectly right for an issue of shares to be underwritten, provided that, in compliance with the provisions of the Companies Act, 1900, the payment of the commission and the amount of the rate per cent. of the commission paid or agreed to be paid are respectively authorised by the articles of association and disclosed in the prospectus, and the commission paid or agreed to be paid does not exceed such amount or rate. MARINE INSUR ANCE ; COMPANIES ; PROMOTERS.