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A promoter is not an agent of the future corporation.
A principal is liable on a contract made by his agent if the agent had actual authority to
make the contract.
If Tom Smith works in the in counsel depart of Supermart Corporation then he will be
considered an employee not a nonemployee agent.
An individual who leaves a partnership by nonwrongful dissociation is entitled to
receive their value of the partnership.
Joe Smith is a recent graduate from Sunset College. While at Sunset College he
majored in Business. In his interview for an auditor position at Supermart Inc. Mr.
Smith convinced the hiring manager he knew enough accounting to perform the job, but
in fact Mr. Smith does not understand Generally Accepted Auditing Standards (GAAS).
Mr. Smith has failed to show professional care and could be liable for his actions as an
auditor because of his lack of skills.
