Officers are liable on an unauthorized contract if the corporation does not ratify it.

Name: Officers are liable on an unauthorized contract if the corporation does not ratify it.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If officers enter into a contract that is beyond their authority, they can be held liable for it. However, if the corporation does not ratify or approve the contract, then the liability remains with the officers who entered into the unauthorized contract.

Officers Are Liable on an Unauthorized Contract If the Corporation