(TCO C, D, G) Mary wishes to create a corporation to operate an art gallery. She completes the articles of incorporation and mails them to the appropriate state office. Then, she leases space, hires a receptionist, buys supplies, and contracts with artists to exhibit their artwork, all on behalf of her corporation. Sometime later, the state issues its certificate of incorporation.

i. Discuss the liability of Mary and the corporation with regard to these contracts Mary has made.

ii. Discuss the effect of a possible novation based upon the above fact situation.