1. Pedro was 70% of the subscribed capital stock of a company which owns an office building. Paolo and Juan own the remaining stock equally between them. Paolo also owns a security agency, a janitorial company and a catering business. In behalf of the office building company, Paolo engaged his companies to render their services to the office building. Are the service contracts valid? Explain
2. X entered into a contract with a corporation. In a suit against the corporation, its lawyer raises the defense that the contract was in violation of its by-laws. Is this defense tenable? why?