Explore BrainMass

Explore BrainMass

    Business Law and different types of corporations

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    When the promoters fail to comply with some of the mandatory conditions precedent to incorporation, but substantially comply with the provisions taken as a whole, what kind of corporation is created?
    a. a de facto corporation
    b. a corporation by estoppel
    c. a corporation quo warranto
    d. a de jure corporation

    The answer is not d.

    © BrainMass Inc. brainmass.com September 24, 2022, 7:10 pm ad1c9bdddf

    Solution Preview

    The answer is C. Qu Warranto corporations are associatons that act as corporations within the state without legally being incorporated OR who fail to comply with the corporation laws of the state.

    de facto corporation
    n. a company which operates as if it were a corporation although it has not completed the legal steps to become incorporated (has not filed its articles, for example) or has been dissolved or suspended but continues to function. The court temporarily treats the corporation as if it were legal in order to avoid unfairness to people who thought the corporation was legal. A corporation formed with a good faith attempt to comply with the law but which fails to meet a minor ...

    Solution Summary

    Explains de facto corporations, corporation by estoppal, corporation quo warrant.