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Business Associations
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Before GreenByte Inc. was incorporated, its founder, Laila, negotiated a three-year office lease with Metro Workspace. The lease identified the tenant as "GreenByte Inc., a corporation to be formed," and Laila signed, "Laila Ortiz, founder." The lease did not say that Laila would be released when the corporation was formed.
Two weeks later, GreenByte's articles of incorporation were accepted for filing. The new corporation moved into the office, paid rent for six months from its corporate bank account, and listed the office as its headquarters. GreenByte then stopped paying rent. Metro sued both GreenByte and Laila.
(a) Is GreenByte liable on the lease?
(b) Is Laila personally liable on the lease?
(c) What facts, if any, would be needed to release Laila from liability?