In the absence of a fair transaction,a contract between the corporation and one of its directors is voidable.

Question

Quizplus · Accepted Answer

If a contract between a corporation and one of its directors is deemed unfair or lacking in mutual benefit, the contract can be voided. This is because the director has a fiduciary duty to act in the best interest of the corporation, and any transaction that benefits the director at the corporation's expense would be a breach of that duty. Thus, the contract is voidable.

In the Absence of a Fair Transaction,a Contract Between the Corporation