With respect to liability for contractual obligations,which of the following would a law professor most likely say operates in such a way that a corporation is liable to the outsider as opposed to the directors who acted on the corporation's behalf?

Question

Quizplus · Accepted Answer

The principles of agency establish that the actions and obligations of directors and officers are attributed to the corporation they represent, making the corporation liable for the contracts they enter into on behalf of the business. Therefore, in case of a breach of contract, the corporation, and not the directors, is responsible for meeting the contractual obligations with the outsider. The other options (A, B, and C) do not relate specifically to liability for contractual obligations.

With Respect to Liability for Contractual Obligations,which of the Following