Law of corporation

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Title: Law of corporation

Essay Details:

Subject: Social Issues

Author: Todd P

Date: May 7, 2016

Level: University

Grade: B

Length: 4 / 988

Essay text:

If this disclosure is not made, the company can: rescind contract. That is exactly what happened in world famous Erlanger v New Sombrero Phosphate Co [1878]. After promoter has hidden the fact that promoted company is buying an island for the price that was double of the original, new board of directors sued him and achieved permission to void the contract, thus leaving the promoter without his profits. This case established a precedent: if a person, who purchase property (assets) and then try to sell it to a company promoted by himself, will not disclose the fact that property belongs to him and he’ll make a profit on this transactions, the contract might be rescinded...

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