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