Bar Exam Uniform Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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Your client is a promoter who, six months ago, signed a contract to purchase custom equipment for a corporation he was forming. The contract did not mention his promoter status. He successfully formed the corporation two months later. The corporation's board then passed a resolution ratifying the equipment contract. The corporation and the equipment seller subsequently signed a new agreement that incorporated the terms of the original contract but explicitly named the corporation as the buyer and stated, "This agreement supersedes all prior agreements between the parties regarding this equipment." The corporation has now defaulted on payment.
The seller has threatened to sue your client personally. What is your client's strongest argument against liability? Select one.
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