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Jane Wishes to Create a Corporation to Operate an Art

question 18

Essay

Jane wishes to create a corporation to operate an art gallery.She completes the articles of incorporation,and mails them to the appropriate state office.She then leases space,hires a receptionist,buys supplies,and contracts with artists to exhibit their artwork,all on behalf of her corporation.Sometime later,the state issues its certificate of incorporation.
A.Discuss the liability of Jane and the corporation with regard to the contracts Jane has made with third parties.
B.Based on the above fact situation,discuss whether a "novation" has occurred.


Definitions:

Tenant-days

A metric used to measure the total number of days all tenants occupy a rental property within a specified period.

Activity Variance

The difference between planned activity levels and actual activity levels, often used in budgeting and forecasting to analyze performance.

Budgeting

The process of creating a plan to spend your money, outlining expected revenues and expenses for a future period.

Actual Results

The real outcomes or results of business activities, measured in terms of performance, revenue, or profits, compared against planned or forecasted outcomes.

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