The president of EcoAgents must affix the company's corporate seal to the bank's lending agreement he signed because this form of business entity lacks the legal capacity to borrow capital.

Question

Quizplus · Accepted Answer

The necessity for a corporate seal on documents, including lending agreements, varies by jurisdiction and the specific requirements of the parties involved, but the presence or absence of a corporate seal does not determine a corporation's legal capacity to borrow capital. Corporations, as legal entities, have the capacity to enter into agreements, including borrowing capital, without the need for a corporate seal.

The President of EcoAgents Must Affix the Company's Corporate Seal