Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
A pre-incorporation contract is a contract purported to made by or on behalf of a company which has not been formed.
Member rating: No Rating | Words: | Submitted: Mon Jun 19 2006
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
INTRODUCTION A pre-incorporation contract is a contract purported to made by or on behalf of a company which has not been formed. It is the intention of this essay to examine how the courts have decided on promoter's liability in relation to pre-incorporation contract. As stated above, a pre-incorporation contract is one which is attempted to be made on behalf of a company which is not yet formed. The problem with these contracts is who exactly is liable under them. The question to be asked is, is the company liable or is it the promoter who incurs liability. At common law, a number of rules were established. The first one is that until the company is formed it has no legal existence. A company comes into being from the date on its certificate of incorporation (s13 Companies' Act 1985 and Re Jubilee Cotton Mills1). Prior to this a pre-incorporation contract cannot...
To see the full version of this document, and 145,345 others
