A promoter is personally liable on contracts made by him in the name of the unformed corporation:
A) even if the corporation adopts the contract.
B) only until the corporation is formed.
C) if the promoter,the third party,and the corporation enter into a novation substituting the corporation for the promoter.
D) only if the corporation is never formed.

Question

Quizplus · Accepted Answer

A promoter is personally liable on contracts made in the name of an unformed corporation even if the corporation later adopts the contract, unless there is a novation that releases the promoter from liability.

A Promoter Is Personally Liable on Contracts Made by Him