Question
Alan, Bob, Charles, and Della decided to form a corporation for bottling and selling cranberry juice. Alan, Bob, and Charles were to operate the business,
Alan, Bob, Charles, and Della decided to form a corporation for bottling and selling cranberry juice. Alan, Bob, and Charles were to operate the business, and Delila was to supply the necessary capital but was to have no voice in the management. They went to Louise, a lawyer, who agreed to organize a corporation for them under the name A-B-C Inc. and paid her funds sufficient to accomplish the incorporation. Louise promised that the corporation would definitely be formed by May 3. On April 27, Bob telephoned Louise to inquire how the incorporation was progressing, and Louise said she had drafted the articles of incorporation and would send them to the Secretary of State that very day. She assured Bob that incorporation would occur before May 3. Relying on Louise's assurance, Bob, with the approval of Alan and Charles, on May 4 entered a written contract with Grower for the latter's entire cranberry crop. The contract was executed by Bob on behalf of "A-B-C Inc." Grower delivered the cranber"?
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