A Promoter Enters into a Contract on Behalf of a Proposed

question 49

Multiple Choice

A promoter enters into a contract on behalf of a proposed corporation.The corporation has not yet come into existence.Which of the following statements best describes the promoter's liability on this contract?

• A) If the corporation never comes into existence,the promoter will be liable on this contract.
• B) Once the corporation comes into existence,the promoter is automatically released from this contract.
• C) If a novation occurs,the promoter is released from this contract.
• D) Even if the corporation is never formed,the promoter is not liable on this contract.
• E) both A and C

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Definitions:

Gender-Specific

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A type of play where children take on roles and enact real-life scenarios, aiding in social and cognitive development.

Imaginary Components

Elements of thought or perception that do not have a physical or real counterpart, often part of creative or mental processes.

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Emotions that involve reflection on the self, such as embarrassment, pride, shame, and guilt.