Individual Analysis Ultra Vires and Conflicts of Interest.docx

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OPTION 2: ULTRA VIRESOya Paka and two business associates formed a corporation called PakaCorp. for the purpose of selling computer services. Oya, who owned 50percent of the corporate shares, served as the corporation’s president. Oyawished to obtain a personal loan from her bank for $250,000, but the bankrequired the note to be cosigned by a third party. Oya cosigned the note inthe name of the corporation. Later, Oya defaulted on the note, and the banksued the corporation for payment. The corporation asserted, as a defense,that Oya had exceeded her authority when she cosigned the note on behalfof the corporation. Had she? Explain fully.

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Term
Winter
Professor
Smiley
Tags
Corporation, Wick, Oya Paka

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