Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lee decided to incorporate a business under the name yStar Inc. Before yStar was incorporated, Lee signed a contract in the name of yStar Inc.

Lee decided to incorporate a business under the name yStar Inc. Before yStar was incorporated, Lee signed a contract in the name of yStar Inc. to have some office space remodeled. Which of the following statements is correct?

a.

yStar is liable on the contract because the contract was signed in its name.

b.

yStar becomes liable on the contract as soon as it is incorporated.

c.

yStar is liable on the contract if the contractor knows that the corporation does not yet exist.

d.

yStar will be liable on the contract only if the corporation adopts the contract.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Regulation Of Lawyers Problems Of Law And Ethics

Authors: Stephen Gillers

12th Edition

1543825869, 978-1543825862

More Books

Students also viewed these Law questions