Al Week 3 Case Study

Al Week 3 Case Study - General Public is even aware of...

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Fox is liable to Cooper. Promoters are liable for the contracts they make on behalf of corporations not yet formed. In addition, a nonexistent corporation has no liability made by a promoter prior to its incorporation. The exception to this rule is if the contracting party knows the corporation is not in existence but agrees to look to the corporation and not the promoter for payment. If that happens, then the promoter incurs no liability. This is how the promoter in this case could have avoided liability. It’s hard to say what the General Public’s perception about promoters is. I don’t know if the
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Unformatted text preview: General Public is even aware of promoters, however, I am sure people in the world of business are aware of them. In my opinion, I see nothing wrong with the promoter. They can greatly assist in the starting of a corporation, but as we saw in the scenario, they must be extremely careful when it comes to how they present themselves to avoid possible liability. I can see though, how they can be a valuable asset....
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This note was uploaded on 10/11/2011 for the course MG 261 taught by Professor Lynch during the Fall '11 term at Park.

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