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

Quizplus · Accepted Answer

A)If a defective corporation conducts business with a third party who later sues for
breach of contract,the corporation cannot claim it is not a corporate entity to escape liability.Courts hold that the corporation is a corporation by estoppel;thus,they estop bar)the corporation from denying its corporate status.
B)If a defective corporation conducts business with a third party who later sues for breach of contract,the corporation cannot claim it is not a corporate entity to escape liability.Courts hold that the corporation is a corporation by estoppel;thus,they estop bar)the corporation from denying its corporate status.
C)If a defective corporation conducts business with a third party who later sues for breach of contract,the corporation cannot claim it is not a corporate entity to escape liability.Courts hold that the corporation is a corporation by estoppel;thus,they estop bar)the corporation from denying its corporate status.
D)If a defective corporation conducts business with a third party who later sues for breach of contract,the corporation cannot claim it is not a corporate entity to escape liability.Courts hold that the corporation is a corporation by estoppel;thus,they estop bar)the corporation from denying its corporate status.
E)If a defective corporation conducts business with a third party who later sues for breach of contract,the corporation cannot claim it is not a corporate entity to escape liability.Courts hold that the corporation is a corporation by estoppel;thus,they estop bar)the corporation from denying its corporate status.

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