A corporation's adoption of a promoter's preincorporation contract made in the name of the corporation usually releases the promoter from liability on the contract.

Name: A corporation's adoption of a promoter's preincorporation contract made in the name of the corporation usually releases the promoter from liability on the contract.
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A promoter remains liable on a preincorporation contract unless there is a novation, where the corporation explicitly agrees to release the promoter and assume liability.

A Corporation's Adoption of a Promoter's Preincorporation Contract Made in the Name