What Is the Impact on a Transferor If a Sec

question 106

Essay

What is the impact on a transferor if a Sec. 351 exchange involves the assumption of the shareholder's liabilities by the corporation?

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Definitions:

Agents And Principals

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Appointment Of An Agent

The act of designating a person or entity to act on behalf of another, granting them authority to make decisions or perform tasks.

Voidable Contracts

are agreements that may appear legally binding, but can be declared invalid by one of the parties due to factors like misrepresentation, coercion, or lack of capacity.

Duty Of Obedience

The requirement for organizational leaders to act in accordance with the organization's goals, policies, and legal obligations.