Mandy and Donald Wish to Form a Corporation to Develop

question 34

Essay

Mandy and Donald wish to form a corporation to develop a $1,000,000 piece of property they own jointly. Prior to incorporation they hire an architect to design a building for their site. Upon completion of incorporation Mandy and Donald, who are the sole directors of the corporation, pass a directors' resolution ratifying the contract with the architect and seeking to make the corporation liable there under. Will they have any legal problems with this procedure?

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Definitions:

Adolescents

Young people going through the phase of development from childhood to adult life, focusing on physical, psychological, and social changes.

Ethnic Identity

A sense of belonging to an ethnic group.

Foreclosure Status

A term used by James Marcia to describe an identity status where an individual has committed to an identity without exploring options.

James Marcia

A developmental psychologist noted for his work on adolescent identity formation and his theory of identity statuses.