Once a corporation is recognized as existing by the state, the corporation automatically becomes liable for all contracts that a promoter had entered into on behalf of the corporation.

Name: Once a corporation is recognized as existing by the state, the corporation automatically becomes liable for all contracts that a promoter had entered into on behalf of the corporation.
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Question

Quizplus · Accepted Answer

Once formed, the corporation must authorize and adopt any preincorporation contracts entered into by promoters.

Once a Corporation Is Recognized as Existing by the State