John Decina contracted with H.A. Smith Lumber & Hardware to buy materials for Decina Corporation. When John

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John Decina contracted with H.A. Smith Lumber & Hardware to buy materials for Decina Corporation. When John Decina completed the credit application with Smith Lumber, he wrote the type of ownership as “corporation” and listed himself as “president” but wrote the “name of Business/Individual” as “John Decina.” He also provided his own builder’s license number, not the builder’s license number of Decina Corporaton. 


Further, he provided his personal Social Security number instead of a corporate tax identification number. Indeed, Decina Corporation was not written anywhere on the application. When Decina Corporation failed to pay for the materials, Smith Lumber sued John Decina personally. Is John Decina personally liable on the contract with Smith Lumber? Explain.

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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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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