Asked by
Evelyn Williams
on Nov 21, 2024Verified
A court may hold that a defective corporation is a[n] ________ in order to prevent it from claiming it is not a corporate entity in order to escape liability to a third party.
A) De jure corporation
B) De facto corporation
C) Corporation by estoppel
D) Corporation by reservation
E) Inactive corporation
Corporation By Estoppel
A legal doctrine that prevents a party from denying the corporate existence of a company when it has treated it as a corporation.
De Facto Corporation
A business treated as a legally incorporated company for all purposes except against the state in a direct proceeding, despite not completing the incorporation process properly.
De Jure Corporation
a corporation that is legally established and operating in accordance with the law.
- Interpret the legal outcomes of defective incorporation and the concept of de facto and de jure corporations.
Verified Answer
TD
Learning Objectives
- Interpret the legal outcomes of defective incorporation and the concept of de facto and de jure corporations.