David formed a corporation for tax purposes. No directors' meetings were held. David retained total control of the corporation's operations and took money from the corporate account for personal purchases. Creditors sought to pierce the corporate veil. Should they succeed? Explain.

The XYZ Corporation was to be formed by Peter, a promoter. To operate the corporation after incorporation, Peter needed to lease certain facilities. Peter executed a lease in the corporate name for office space without revealing to the lessor that the corporation had not yet been organized. The corporation subsequently came into existence, and the board declined to accept the office space lease Peter had executed in the corporate name.

1. Can the corporation validly decline the lease of office space? Explain.
2. Does Peter have any liability on any of the leases he made? Explain.