Roger is the promoter of a new corporation.On behalf of the as yet unincorporated business, he enters into a three-year lease agreement for office space and personally signs the lease in his own name.The corporation is liable on the contract, because Roger is its agent.

Question

Quizplus · Accepted Answer

Since the corporation was not yet formed at the time Roger signed the lease, it cannot be held liable for the contract. Roger, having signed in his own name for a non-existent entity, would personally be liable unless the corporation, once formed, adopts the lease.

Roger Is the Promoter of a New Corporation