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Barry - Business law

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Barry runs the board of directors for Halal Hash Distributors (HHD). Recently, Barry decided to begin a separate company, owned exclusively by Barry, that specialized in raising pigs from which hash could be produced. Because Barry had influence on the board at HHD, he decided to ask the board to contract with him for their animal needs. Can Barry legally contract with HHD? Explain why or why not.

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Solution Summary

This solution explains if Barry can legally contract with HHD. Legal references are also provided.

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Barry cannot legally contract with HHD due to his influence over the board. Barry is an agent of HHD and cannot enter into agreements that are not in the sole best interest of the corporation. This agreement was formed to be in the best interests of Barry - namely, to make money for him due to the ownership of the second ...

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