A promoter is automatically released from liability on a promoter's contract if the newly-formed corporation agrees to be bound by the contract.

Question

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A promoter is not automatically released from liability on a promoter's contract if the newly-formed corporation agrees to be bound by the contract. The promoter remains bound by the contract unless there is an agreement between the parties to release them from liability.

A Promoter Is Automatically Released from Liability on a Promoter's