BUS2 365 Lecture Notes - Lecture 7: The Takeaway, No Reasons, Secondary Liability
5 Mar 2018
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The nature of the corporation (b) the corporation as a legal person. Recap: when can creditors circumvent limited liability and sue directing minds of the corporation, tort of inducing breach of contract. Rationale: voluntary creditors (those who have a k) assume the risk of limited liability (not being able to fully recover a claim against the corp) Rationale: involuntary creditors have not accepted limited liability as voluntary creditors have. Rather, their only interest is recovering loss from someone who wronged them. Overview: continuation of exceptions to policy of limited liability for corporations. Involvement in breach of trust: primary vs secondary liability: secondary liability is accessory fault. Air canada v m&l travel (1993 - scc) Facts: travel agency ml had agreement that $ received for tickets will be held in trust for benefit of airline. Corp did not segregae $ into separate bank account, but instead put into agendy"s general account.
