Arnold was the sole shareholder, president, and CEO of Algernon Enterprises, Inc. Acting on behalf of Algernon, Arnold negotiated the purchase on credit of inventory from Amax. The contract was signed in the name of Algernon Enterprises. Algernon never paid the sums due on the contract, and Arnold and the corporation were sued. What is the liability of Arnold?
Expert Answer
In this particular case Arnold was not having any liability as the contract was done by the Algernon Enterprises. As per the contract law the shareholders and the officers do not have any responsibility in the corporate debts.
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