To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

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Simply stating that a party is entering into a pre-incorporation contract on behalf of a company to be incorporated is not enough to escape personal liability. The company must actually be incorporated and assume the obligations of the contract. Until then, the person who signed the contract may be personally liable for any breach.

To Escape Personal Liability,when a Party Enters into a Pre-Incorporation