Corporate shareholders' liability is limited to the amount of ...

[jho37]

Corporate shareholders' liability is limited to the amount of their investment.
  Indicate whether the statement is true or false

Question 2

Barbara Laudig and Robert Laudig were married in 1972. In 1987, Mr. Laudig discovered that Mrs. Laudig was involved in an extramarital relationship. Mr. Laudig left their home, but returned later that year and agreed to stay if Mrs. Laudig would sign a postnuptial agreement. The agreement provided that Mrs. Laudig, in exchange for 10,000, would waive all rights to marital property if she had an extramarital affair anytime during the next 15 years. The agreement was signed by both parties in August 1987. In December 1988, Mrs. Laudig renewed her relationship with her former paramour, and Mr. Laudig filed for divorce in May 1989. Mr. Laudig sought to enforce the postnuptial agreement and be awarded all the marital property. Mrs. Laudig objected on the grounds that their postnuptial agreement was against public policy. Who is correct and why?

[emsimon14]

Answer to Question 1

TRUE

Answer to Question 2

The court held that the agreement was valid because it was an agreement that encouraged marital fidelity, something that is a good public policy. Some courts might disagree because property rights exist because of marital rights and should not be taken away through property agreements that tie in other factors. The courts are very careful about these types of agreements so that property rights are not destroyed by factors, issues, and events not incorporated in the law.