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:

Converted

Refers to the change of something from one form or function to another, such as converting securities into another type of financial asset.

Negligent

Failing to take proper care in doing something, which results in harm or damage to someone or something.

Transfer Warranties

Assurances made by a seller to a buyer about the quality, performance, or condition of a good or title being transferred.

Altered

Altered denotes something that has been changed, modified, or adjusted from its original form or state.