Jane Wishes to Create a Corporation to Operate an Art

question 41

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.Then,she 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 these contracts Jane has made.
B.Discuss novation based upon the above fact situation.

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Definitions:

Personal Debt

Money that is owed by an individual, as opposed to debts owed by corporations or governments.

Homecoming Parade Float

A decorated platform, either built on a vehicle like a truck or towed behind one, designed for display in the processional of a homecoming parade, often representing specific themes or celebrating certain achievements.

Breach of Contract

The inability to fulfill obligations as outlined in an agreement without a valid legal justification.

Legally Binding

A term indicating that an agreement has been acknowledged by law and is enforceable by judicial action.