Quixotic Company claims to be a corporation but it is not.Rachel signs a con?tract with Quixotic that is not performed.In Rachel's suit against Quixotic,a court will likely recognize the firm as

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A corporation by estoppel is one that holds itself out as a corporation and is therefore estopped from denying its corporate status in a legal proceeding. This is likely the case with Quixotic Company, as they claim to be a corporation but are not actually formed as one. In Rachel's suit against them, the court is likely to recognize them as a corporation by estoppel and hold them accountable accordingly.

Quixotic Company Claims to Be a Corporation but It Is