Unformatted text preview: the corporation for payment. The corporation asserted, as a defense, that Kora had exceeded his authority when he cosigned the note. Had he? Explain. Sample Answer: It could be argued that Kora exceeded his authority when he co-signed the note on behalf of the corporation. The board of directors of a corporation delegates the authority to transact all ordinary business of the corporation to the president. If co-signing a note for a personal loan is not “ordinary business of the corpora-tion,” then the board, as principal, must ratify the act. There is no indication in the question that the board did so in this case....
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- Spring '11
- Business Law, Corporation, Sample answer, Kora