A contract entered into by a corporation is enforceable:

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Quizplus · Accepted Answer

A corporation is a separate legal entity from its shareholders, directors, and officers. Therefore, contracts entered into by a corporation are enforceable against the corporation as an artificial person. Shareholders are typically not individually liable for the corporation's debts or obligations, unless they have personally guaranteed them. The enforceability of a contract may be affected by the corporation's constitution or bylaws, but such documents do not necessarily have to explicitly authorize the specific contract for it to be enforceable. Directors may be held liable for breaches of their fiduciary duties, but this does not necessarily affect the enforceability of the contract itself.

A Contract Entered into by a Corporation Is Enforceable