BUSI 3705U Study Guide - Final Guide: Summary Offence, Canada Business Corporations Act, Chief Financial Officer
Document Summary
Chapter 16 the corporate form: operaional maters. Areas of law where rules were developed to determine the legal consequences of corporate behaviour: torts, contracts, crimes and regulatory ofences. Commonality of primary liability and vicarious liability: a corporaion is subject to accountability for both. Yes, through the applicaion of the ideniicaion theory. Commercial inconvenience involving corporaions was resolved by the aboliion of the doctrine of construcive noice: the inability to rely on the apparent authority of corporate agents to contract. Circumstances where court will ind promoter not to be personably liable: if a speciic provision expressly relieves such liability. Disinguishing characterisic of per-incorporaion contracts: they are governed by federal and provincial statutes. Preferable for risk mgmt. to use a shelf company as the vehicle for taking promt advantage of a valuable business opportunity: it facilitates direct entrance into contractual obligaions by the corporaion. No indicaion on who they intend to be liable if enity fails: in a pre-incorporaion contract.
