Question
Esther and Salim are promoters for Kale Inc. Prior to its incorporation; Esther negotiated several reincorporation contracts with Ian, an investor. She signed each contract
Esther and Salim are promoters for Kale Inc. Prior to its incorporation; Esther negotiated several reincorporation contracts with Ian, an investor. She signed each contract in the name of Kale Inc. Kale subsequently was incorporated, but the Kale Board of Directors refused to adopt the contracts. Ian later sues Kale, Esther, and Salim on the contracts. Which of the following statements is true of this case?
A. Only Kale and Esther are liable as Esther, a promoter of Kale, negotiated several reincorporation contracts with Ian.
B. Esther is solely liable as she signed each contract in the name of Kale Inc.
C. Kale, Esther, and Salim are liable as they are sued by Ian.
D. Esther and Salim are liable as they are promoters of Kale Inc
Step by Step Solution
3.48 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
A Only Kale and Esther ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Document Format ( 2 attachments)
608f67c825f23_21034.pdf
180 KBs PDF File
608f67c825f23_21034.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
