Question: B D Shrimp Inc a Delaware corporation made a

B & D Shrimp, Inc., a Delaware corporation, made a contract in Texas to sell a commercial shrimp boat to Donald Gosch and Jesse Bach. Gosch and Bach paid $5,000 down and received immediate possession of the boat in Texas, where they would shrimp in the coastal waters. The contract stated that Gosch and Bach would get title to the boat after transferring a cabin cruiser to Shrimp, Inc., and paying 15 percent of the cash proceeds from the boat's daily shrimp catches for the next calendar year. When Gosch and Bach defaulted on the contract, Shrimp, Inc., sued Gosch and won the case. Shrimp, Inc., however, had not obtained a certificate of authority to do business in Texas. Twenty days after the judgment was entered, Gosch contested the judgment on the grounds that Shrimp, Inc., by failing to qualify to do business, could not use Texas's courts to obtain a judgment against Gosch. Shrimp, Inc., decided at that time, therefore, to obtain a certificate of authority. Is the judgment for Shrimp, Inc., against Gosch valid?

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  • CreatedJuly 16, 2014
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