N
nuckleheadz
Guest
John and Tim acted as promoters for ABC corporation, now chartered in New York. John and Tim signed a 20-year
lease at very favorable terms for space for the corporation. the corporation was not chartered at the time the
lease was signed. Both John and Tim forgot to place a clause in the contract releasing them from personal liability
when the corporation was chartered. Shortly after the corporation was chartered, John and Tim became angry at
the officers of the corporation who were the only shareholders. Neither John nor Tim were shareholders.
They were promised they would be appointed officers if they obtained the lease and other items. Now they
want nothing to do with the corporation and do not want to be liable on the lease. The officers/ shareholders
refuse to remove John and Tim from the lease. Decide the issue and give your reasons.
lease at very favorable terms for space for the corporation. the corporation was not chartered at the time the
lease was signed. Both John and Tim forgot to place a clause in the contract releasing them from personal liability
when the corporation was chartered. Shortly after the corporation was chartered, John and Tim became angry at
the officers of the corporation who were the only shareholders. Neither John nor Tim were shareholders.
They were promised they would be appointed officers if they obtained the lease and other items. Now they
want nothing to do with the corporation and do not want to be liable on the lease. The officers/ shareholders
refuse to remove John and Tim from the lease. Decide the issue and give your reasons.