Diamond Construction Corporation claims to be a corporation, but it is not. Everett signs a contract with Diamond that it does not perform. Everett files a suit against Diamond. The court will likely hold that Diamond is

A. a corporation by estoppel.

B. a de facto corporation.

C. a de jure corporation.

D. an ultra vires corporation.

Question

Pablo Carson

Business

5 January, 19:11

Diamond Construction Corporation claims to be a corporation, but it is not. Everett signs a contract with Diamond that it does not perform. Everett files a suit against Diamond. The court will likely hold that Diamond is

A. a corporation by estoppel.

B. a de facto corporation.

C. a de jure corporation.

D. an ultra vires corporation.

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Answers (1)

Know the Answer?

Julia Zavala · Answer 1

The correct answer is letter "A": a corporation by estoppel.

Explanation:

A corporation by estoppel refers to individuals or organizations contracting and dealing with an entity as if they were corporations when legally they are not. The term is also used when in court cases when the defendant alleges to have formed a defective corporation to avoid liabilities.