Question: Dr. Warfield hired Wolfe, a young carpenter, to build his house. A week or so...

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Question: Dr. Warfield hired Wolfe, a young carpenter, to build his house. A week or so after they signed the contract, Wolfe filed Articles of Incorporation for Wolfe Construction, Inc. Warfield made payments to the corporation. Unfortunately, the work on the house was shoddy. The architect said he did not know whether to blow up the house or try and salvage what was there. Warfield sued Wolfe and Wolfe Construction, Inc. for damages. Wolfe argued that if he was liable as a promoter, then the corporation must be absolved and that, conversely, if the corporation was held liable, he, as an individual, must not be. Who is liable to Warfield? Does it matter if Wolfe signed the contract in his own name or in the name of the corporation? Strategy: Wolfe's argument is wrong-Warfield does not have to choose between suing him individually or suing the corporation. He can certainly sue both. Result: Wolfe is personally liable on any contract signed before the corporation is filed, no matter whose name is on the contract. The corporation is only liable if it adopts the contract. Did it do so here? The fact that the corporation cashed checks that were made out to it means that the corporation is also liable. So Warfield can sue both Wolfe and the corporation.