When is there a corporation by estoppel? | 5 January 2025

Corporation by estoppel is a legal doctrine used to address situations where a business entity operates as if it were a legally recognized corporation, despite failing to meet certain formalities required for official incorporation.

Author

Alburo Law
January 05, 2025

The doctrine of corporation by estoppel is founded on principles of equity and is designed to prevent injustice and unfairness. It applies when a non-existent corporation enters into contracts or dealings with third persons. In which case, the person who has contracted or otherwise dealt with the non-existent corporation is estopped to deny the latter’s legal existence in any action leading out of or involving such contract or dealing.

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