A public utility corporation was created under legislation that gave it the right to build and maintain power stations, and to raise money within the province to do so. If the PUC enters into a contract to supply power to a group of companies in another province, with the intent to use the money thus raised to build more power stations in the province, that contract is enforceable by the corporations if the PUC decides not to honour it.

Question

Quizplus · Accepted Answer

The contract may not be enforceable if the PUC exceeded its statutory authority by entering into agreements outside its jurisdiction or intended purpose as defined by the legislation.

A Public Utility Corporation Was Created Under Legislation That Gave