A promoter enters into a contract on behalf of a proposed corporation.The corporation has not yet come into existence.Which of the following statements best describes the promoter's liability on this contract?
A) If the corporation never comes into existence,the promoter will be liable on this contract.
B) Once the corporation comes into existence,the promoter is automatically released from this contract.
C) If a novation occurs,the promoter is released from this contract.
D) Even if the corporation is never formed,the promoter is not liable on this contract.
E) both A and C
Correct Answer:
Verified
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