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.

Question

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A court may hold that a defective corporation is a "corporation by estoppel" to prevent it from escaping liability by claiming it is not a corporate entity. This legal principle stops a company from denying its corporate status when it has acted as a corporation towards a third party.

A Court May Hold That a Defective Corporation Is A[n]