Deepwater Dredging & Excavation holds itself out to others as being a corporation but makes no attempt to incorporate.Estuary Marina signs a contract with Deepwater that is not performed.Estuary Marina files a suit against the firm.The court will likely hold that Deepwater is

Question

Quizplus · Accepted Answer

A corporation by estoppel is a fictitious corporation that is treated as a corporation in legal proceedings because it holds itself out to others as a corporation, regardless of whether it is actually incorporated. In this case, Deepwater Dredging & Excavation holds itself out to others as being a corporation, and Estuary Marina entered into a contract with the firm believing it to be a corporation. Therefore, the court is likely to hold that Deepwater is a corporation by estoppel.

Deepwater Dredging & Excavation Holds Itself Out to Others as Being