Denise is a promoter for a proposed corporation, EVR-Young Corp As promoter, she signed a three-year lease to rent office space in an office park. She signed her name and indicated below her signature she is signing as "promoter for EVR-Young Corp, a
company yet to be incorporated." EVR-Young is never incorporated. The lessor believes that Denise is personally liable for any damages it will sustain as a result of the three-year lease having to be breached. Is Denise personally liable? Explain.
Since Denise signed the contract as a promoter for a company yet to be incorporated, she is personally liable for any damages sustained by the lessor. She cannot claim she was an agent for the corporation since a person can only be an agent for an existing principal. Since EVR-Young Corp. was not legally recognized as an entity at the time the lease was signed, Denise could not be the company's agent. She is personally liable on this contract unless she and the lessor had an express agreement that she would not be liable in the event the corporation was never formed.
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