Law
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Title: Law

Essay Details:

Subject: English
Author: Eric B
Date: July 15, 2015
Level: University
Grade: A
Length: 2 / 317

Essay text:

Also; the pre-incorporation contracts cannot bind the company. In this case, Bosco is the promoter who is on behalf of Bozo Limited to sign the tenancy agreement. However the contract was signed before Bozo Limited was corporated. Therefore, this tenancy agreement is a pre-incorporation contract which the company cannot sue or be sued in this pre-incorporation contract. (Case: Newborne v Sensolid (GB) Ltd [1954] ) Secondly, the company cannot ratify the pre-incorporation contract after its incorporation. But the pre-incorporation can bind the promoters; they may be personally liable on a pre-incorporation contract unless the parties to the contract specifically stipulate in the contract that the promoters will not be liable under Common law position...

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