The Promoter of a Corporation, Called Seymour Holdings Ltd

question 77

Multiple Choice

The promoter of a corporation, called Seymour Holdings Ltd., contracted for $4000 worth of office furniture "on behalf of Seymour Holdings Ltd.," prior to incorporation. After incorporation, the new directors want to ensure that the corporation is bound. They will be able to do so if

• A) the corporation ratifies the contract and ratification is permitted in the jurisdiction.
• B) the promoter intended that the corporation, and not himself, would be bound by the contract.
• C) the promoter made it clear that he was signing on behalf of the corporation.
• D) the corporation is closely held and the promoter is a director.
• E) the promoter was acting in the best interests of the corporation to be formed.

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Definitions:

Ethylpentane

A chemical compound that is a type of hydrocarbon, specifically an alkane with the chemical formula C7H16.

Methylhexane

A type of hydrocarbon with a branched-chain structure, used in organic chemistry and industrial applications.

Propylbutane

A hydrocarbon with the formula C7H16, representing one of the various structural isomers of heptane.

Condensed Structural Formula

A method of representing the molecules of a compound using lines for bonds and showing the arrangement of connected atoms, but omitting bonding hydrogen atoms.