Robert Waddell decided to go into the construction business, and therefore, he signed the articles of incorporations

Question:

Robert Waddell decided to go into the construction business, and therefore, he signed the articles of incorporations for R. H. Waddell Construction Inc. as the incorporator on August 19, 1988. Unbeknown to Waddell, the articles were not filed by the secretary of state’s office until December 9, 1988. On September 12, 1988, Waddell entered into a contract to construct a home for Robert Valiga and signed the contract on behalf of R. H. Waddell Construction. On February 11, 1989, Waddell received a letter from Valiga expressing dissatisfaction with the slow progress and the shocking cost of the completed construction, and three days later, Waddell quit as Valiga’s contractor. Subsequently, Valiga sued Waddell and others claiming there was no corporation registered in the State of Tennessee named R. H. Waddell Construction when the contract was entered into on September 12, 1988. Is Waddell personally liable as a promoter for the construction contract signed in the name of R. H. Waddell Construction?

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

Question Posted: