If an Agent Acts for a Corporation That Is Not

question 40

True/False

If an agent acts for a corporation that is not yet formed or for an entity that has no legal existence, such as an unincorporated association, the agent is not personally liable on a resulting contract.

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Definitions:

Precautionary Motive

A rationale for holding money or liquid assets to guard against future uncertainties and potential emergencies.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Cash

Physical currency such as coins and banknotes or the equivalent in bank balances that can be immediately accessible.