pre_incorporation_contracts

May 19th, 2015
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American Commercial College - Abilene
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Pre-incorporation ContractsA pre-incorporated contract is an agreement which is entered into, usually by a promoter or promoters, on behalf of a company at a time when the company's formation has not been completed by its registration. A few cases have been contested in English courts regarding the effect of such agreements. The following rules were enunciated by the judges in the course of deciding the said cases:(a)If the agreement is a written one and it is apparent from the words used therein that the promoters were contracting as individuals, they will be held personally liable un

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