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What is pre-incorporation contract

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What is pre-incorporation contract

Posted by Aryan Pal 6 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Rajat Singh 6 years, 9 months ago

A pre-incorporation agreement is entered into by the corporate promoters, who form the company by filing its Articles of Incorporation. Since the corporation has not been formed yet, it cannot be a party to the agreement. If the corporation is not formed or if it fails to adopt the agreement, the promoters can be held personally liable for any breach of the agreement.

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