A Corporation Is Automatically Bound to Its Promoters' Contracts as Soon

question 102

True/False

A corporation is automatically bound to its promoters' contracts as soon as the corporation is formed.

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Definitions:

Illegal

Activities or practices that are forbidden by law and subject to penalties if violated.

Agency Agreement

A contract in which one party (the agent) agrees to act on behalf of another party (the principal) in particular transactions.

Binding

Refers to an agreement or contract that is legally enforceable by law.

Independent Agent

An individual or entity that operates independently from the parties they contract with, often acting on behalf of another in a business transaction.