Diamond Construction Corporation claims to be a corporation, but it is not. Everett signs a contract with Diamond that it does n
ot perform. Everett files a suit against Diamond. The court will likely hold that Diamond is A. a corporation by estoppel.
B. a de facto corporation.
C. a de jure corporation.
D. an ultra vires corporation.
The correct answer is letter "A": a corporation by estoppel.
Explanation:
A corporation by estoppel refers to individuals or organizations contracting and dealing with an entity as if they were corporations when legally they are not. The term is also used when in court cases when the defendant alleges to have formed a defective corporation to avoid liabilities.
This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.
