THE INFORMATION PORTAL

An incorporated company is one of the most common ways of conducting a business. The corporation is a separate person in the eyes of the law – it’s a separate legal entity. It’s “separate” because it’s a separate legal entity from the people who own the corporation (who are called shareholders). It’s a “person” because it has the capacity, rights, powers, and privileges of a natural person.

The Canadian Encyclopedic Digest defines a contract as: “an agreement free from vitiating factors such as mistake or misrepresentation, and constituted by the unconditional acceptance of an outstanding offer involving a reasonably precise and complete set of terms between two or more contractually competent parties, who intend to create mutual and reciprocal rights and duties that may be the subject of judicial sanction, if they are expressed in any required form, and are free from the taint of illegality or immorality, and are not subsequently discharged by law, by agreement, by breach, or by sufficient supervening circumstances.”