Saturday, January 19, 2019

What are the three possible positions of pre-incorporation contracts of a company?

Pre- incorporation contract:

A company cannot be bound by a contract which was made on its behalf by any person and including a promoter before the Company itself had been formed. The Company cannot even ratify any pre-incorporation contract and the promoters will be personally liable. In this regard a fresh contract can be accorded by the Company after the incorporation.

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