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Springfield Mall sued Tofu Granola and Herb Evore personally for back rent accruing pursuant to a lease they signed prior to incorporating their business Organic

Springfield Mall sued Tofu Granola and Herb Evore personally for back rent accruing pursuant to a lease they signed prior to incorporating their business Organic Oasis Restaurant, Inc. At trial, the court should hold

  1. Tofu and Herb are not personally liable as directors and shareholders enjoy limited liability for corporate debts
  2. Tofu and Herb are personally liable because they committed fraud in signing the lease
  3. Tofu and Herb are personally liable as they acted on behalf of the business before it was properly incorporated
  4. Tofu and Herb are not personally liable as Organic Oasis Restaurant, Inc. automatically assumed their liability upon its formation

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