Even if the corporation agrees to be bound to the contract,the promoter remains liable on the contract unless the parties enter into a novation.

Question

Quizplus · Accepted Answer

This statement is true. Even if the corporation agrees to be bound to the contract, the promoter (who initially signed the contract) remains liable unless the parties enter into a novation, which would release the promoter from liability and transfer it to the corporation.

Even If the Corporation Agrees to Be Bound to the Contract,the