A Party Who Makes a Preincorporation Contract with a Corporate

question 56

Multiple Choice

A party who makes a preincorporation contract with a corporate promoter is liable on the preincorporation contract:

• A)only after the corporation's board of directors adopts the contract after the corporation has come into existence.
• B)only after the corporation's articles have been filed with the secretary of state.
• C)when the party agrees to look only to the prospective corporation for performance of the contract.
• D)only when the promoter is liable on the contract.

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Definitions:

Principle Place of Business

The primary location where a company's business is performed or managed, often considered in legal jurisdictional issues.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually agreeable solution.

Preserve Relationships

An approach or strategy aimed at maintaining positive and sustainable relationships within personal or professional settings.

High Level of Autonomy

A state or condition of having significant independence or freedom in decision-making or actions.