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This section contains the nature of the case and procedural background.

Swann (P) sued Echols (D) for a balance due on an open account in the name of Cupid's, Inc. The trial court found that D thought that Cupid's had been properly incorporated in January 1980 and that P dealt exclusively with Cupid. Cupid was not incorporated until October 1980. The trial court invoked corporation by estoppel and found for D. P appealed.

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