Read pillowcase Problem 1 on page 795 in the bespoke Text and address the following questions.
a. What legal arguments should the banks lawyers advance to steel the three individual founders pay the lend?
b. What legal arguments potbelly the individual founders make to support their view that they should not be individually liable to pay the loan?
Response
low agency law, the banks lawyers should advise all three individual founders that apiece holder is considered to be liable based on the subscribe loan agreement. The bank should also advise the founders that based on evidence that Cogen, Inc., is not considered to be a De Jure Corporation, businesses that nonplus been fully and legally chartered in accordance with the alimentation and requirements of a given government (Bagley and Savage), their personal assets sack up be garnished. In event, the Cogen, Inc., made the executive decision to no drawn-out deal with their initial law firm, Wilson Scott Associates who attempted the actual in flock, save created a typographical error of naming the corporation Cogene rather of Cogen. Therefore, Cogen, Inc.
, is not an official incorporation and extracts them from being De Facto Corporation, a company which operates as if it were a corporation although it has not immaculate the legal steps to become incorporated or has been fade out or suspended but continues to function.
Arguments in which the individual founders can make to support their claim of the default in loan agreement, would be to consider the conception of Corporation by Estoppel. This idea states that if a third party (Firstloan) treats a business as a corporation, the third party cannot deny it is a corporation and try to reach shareholders personal assets. Since Firstloan determined that Cogen, Inc., was in fact a corporation and granted a 5 gazillion dollar loan to the business, without properly verifying with the Secretary of...If you compliments to get a full essay, order it on our website: Orderessay
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