Question
Frieda believes she has a great idea for a new business: Friedas Frozen Fish Pops! Frieda doesnt have any money, howe ver; just an idea
Frieda believes she has a great idea for a new business: Friedas Frozen Fish Pops! Frieda doesnt have any money, howe ver; just an idea and a lot of ambition. Fortunately for Frieda, her mother is a person of some means and has already told Frieda shed be glad to invest in the business. Her mother does not care what form of business Frieda chooses, so Frieda tells her mo m shes going to incorporate, and some days later, in exchange for a check for a substantial sum, Frieda gives her mom a stack of stock certificates indicating that shes a shareholder. Newly infused with her mothers cash, Frieda goes about her efforts to get Friedas Frozen Fish Pops up and running, and, among many other steps she takes, she signs a lease for retail space. At length, however, her business goes awry and Frieda never makes enough money to pay any rent on the lease. Incidentally, Frieda lied to her mother and never filed any articles of incorporation. Is Frieda liable on the lease she signed? Is Friedas mother personally liable on the lease signed by Frieda? Suppose (changing the facts stated above) that Frieda did file articles of incorpor ation subsequent to the date she entered the lease agreement, and that the articles are accepted by the Secretary of State before Friedas business went awry. Is Frieda liable on the lease she signed?
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