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Discussion Scenario: Joe Greatan was a real estate salesman. Greatan sold to Darman, Doden & Droffats Associates (Triple D), a general partnership, an apartment building that needed extensive renovation. Greatan represented that he personally had experience in renovation work. During the course of negotiations on a renovation contract, Greatan informed the managing partner of Triple D that he would be forming a corporation named "Building Development and Design" to do the work. A contract was executed in August between Triple D and "Building Development and Design (In Formation), Joe Greatan, President." The contract required the renovation work to be completed by October 15. Greatan immediately subcontracted the work, but the renovation was not completed on time. Triple D also found that the work that was completed was of poor quality. Greatan did not file the articles of incorporation for his new corporation until November 1. The partners of Triple D sued Greatan to hold him liable for the renovation contacts. Greatan denied personal liability.
Discussion Questions: After reviewing the learning materials in this Module, prepare an Initial Post that incorporates these materials to answer the following questions. Also, your grade in this learning activity relies on your engagement in the discussion through your Peer Replies (TWO or more).
Topic Questions:
Was it ethical for Greatan to deny liability? Why or why not?
Is Greatan personally liable? Why or why not?
In general, how should the president of a corporation sign a contract to make the contract legally binding on the corporation?
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