When a third party,based on all of its transactions with the enterprise,acts as if it were doing business with a corporation,the third party is prevented from claiming that the enterprise is not a corporation because a __________ has been formed.
A) partnership by estoppel
B) corporation de facto
C) corporation de jure
D) corporation by estoppel

Question

Quizplus · Accepted Answer

Corporation by estoppel prevents a third party from denying the corporate status of an enterprise when they have treated it as such in their dealings. This legal principle protects the expectations and agreements made under the assumption of corporate status.

When a Third Party,based on All of Its Transactions with the Enterprise,acts