To Escape Personal Liability,when a Party Enters into a Pre-Incorporation

question 41

True/False

To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

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Definitions:

Escalation of Commitment

The tendency to continue investing in a project or decision despite evidence of its failing prospects, often due to psychological commitment.

Overconfidence

The state of being excessively confident, often leading to underestimating risks, challenges, or the abilities of others.

Too Much Time

Too much time typically refers to scenarios where there is an excess of available time which could lead to inefficiency or procrastination.

General Decision-making Model

A step-by-step approach to making decisions that typically starts with identifying a problem, generating alternative solutions, evaluating the alternatives, and then selecting and implementing the best solution.