A Person Who Participates in the Initial Setting Up of a Corporation

question 127

True/False

A person who participates in the initial setting up of a corporation or who assists the corporation in making a public share offering is known as promoter.

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Definitions:

Undisclosed Principal

A principal whose identity is unknown by a third party, and that party has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract.

Tortious Act

A wrongful act or infringement of a right leading to legal liability, not arising from a contract or statute.

Estopped

A legal principle that prevents someone from arguing something contrary to a claim previously made or accepted in court.

Commission of a Tort

The act of committing a wrongful act, excluding breach of contract, for which a civil action can be brought.