Business Associations Keyed to Hamilton
Robertson v. Levy
Levy (D) attempted to form a corporation, but the Articles of Incorporation were rejected by the Corporation Commission. Levy (D) entered into a contract to purchase Robertsons’ (P) business in exchange for the corporation, prior to the acceptance of the corrected Articles of Incorporation. The corporation was validated, and Levy (D) signed as President. After one payment to Robertson (P), the corporation became insolvent. Robertson (P) sued Levy (D) on the incomplete payments claiming Levy personally liable for signing the contract before incorporation. The trial court found Robertson’s claim invalid for accepting payment on the note of the corporation when he knew the corporation had not been validly formed at the signing of the contract.
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