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Business Organizations Keyed to Ragazzo
Cantor v. Sunshine Greenery Inc.
Citation:398 A.2d 571
Plaintiff, Cantor, leased a building to the Defendant, Sunshine Greenery. Defendant’s President signed on behalf of the entity and paid the first deposit. Under the law, Defendant didn’t exist as an entity when the lease was signed and was officially formed two days after the lease was signed. Defendant later repudiated the lease and the President stopped making payments. Plaintiff filed for breach of contract against the Defendant and against it’s President. The trial court entered default judgement against the Defendant. The court also found that the Plaintiff was entitled to an action against the President given that the President was a promoter since the entity didn’t exist when the lease was signed.
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