The failure of a corporation to file or record in every county evidence of its powers results in what legal effect?

• A. SUBSTANTIAL FINE
• B. INVALIDATION OF CONTRACTS
• C. ESTOPPEL TO DENY A LACK OF POWER OR AUTHORITY
• D. NONE OF THE ABOVE

Answer: (C)

When a corporation doesn’t file or record in every county to show its powers, the law treats it as estopped from denying the authority of its officers or agents to bind the corporation in those dealings. This protects people who act in good faith based on the appearance of authority: if a corporate officer signs a contract or takes action for the company, the public record that would show authority isn’t available, so the company cannot later say the officer lacked power to act. This estoppel prevents the corporation from avoiding its obligations simply because the filing wasn’t complete, ensuring relied-upon dealings aren’t overturned. The other options don’t fit because this is about shielding reliance on apparent authority, not about fines or automatic contract invalidation.