A, B, C, D, and E constituted the board of directors of the X Corporation. While D

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A, B, C, D, and E constituted the board of directors of the X Corporation. While D and E were out of town, A, B, and C held a special meeting of the board. Just as the meeting began, C became ill. He then gave a proxy to A and went home. A resolution was then adopted directing and authorizing X Corporation’s purchase of an adjoining piece of land owned by S as a site for an additional factory building. As was known by S, the purchase required approval by the board of directors. A and B voted for the resolution, and A, as C’s proxy, cast C’s vote in favor of the resolution. X Corporation then made a contract with S for the purchase of the land. After the return of D and E, another special meeting of the board was held with all five directors present. A resolution was then unanimously adopted to cancel the contract with S. So notified, may S recover damages for breach of contract from X Corporation?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting For Undergraduates

ISBN: 9780357499948

2nd Edition

Authors: James Wallace, Scott Hobson, Theodore Christensen

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