Sara and John each contributed $1000 to open a children's clothing store. They decided to do business as a corporation, S&J, Inc. John typed the articles of incorporation and submitted them to the Secretary of State's office in September of 1997. By mistake, John typed "December 1, 1997" rather than "October 1, 1997" as the date when he intended S&J, Inc. to begin doing business. All the formalities of forming a corporation were correctly completed, including issuing shares of stock in John's and Sara's names. During October, S&J, Inc. entered into a lease, obtained insurance, and ordered $100,000 worth of children's clothing on credit from various suppliers, with Sara signing as President. The grand opening of the store was held on November 1, 1997. On November 15, 1997, the contents of the store were destroyed by fire. The insurer refused to pay for the destroyed goods, claiming its policy only covered corporate property. Because S&J, Inc.'s certificate of incorporation was not issued until December 1, 1997, the insurer claimed that there was no corporation at the time of the loss and thus no coverage. Question: The suppliers seek to hold Sara and John personally liable for the amount owed for the children's clothing. Sara has come to you for advice concerning her personal liability to the suppliers and the insurer's obligation to pay for the destroyed goods. Was a corporation formed? What are the considerations related to contract formation? Can there be shareholder liability? Can there be personal liability? What consideration are there related to the insurer? Supplier? Please explain your answer in detail (show reasoning and application of legal principles). Please also limit your discussion to principles of corporate law