Corporate contracts are enforceable:

Question

Quizplus · Accepted Answer

Corporate contracts are enforceable against the corporation as an artificial person. The corporation is considered a legal entity separate from its shareholders and directors, so the contract is binding on the corporation itself. Shareholders and directors are generally not personally liable for corporate debts or obligations unless they have guaranteed or signed the contract in their personal capacity. Consistency with the corporation's constitution is important for the internal governance of the corporation, but it does not necessarily affect the enforceability of a contract with an outside party.

Corporate Contracts Are Enforceable