The promoter of a corporation, called Seymour Holdings Ltd., contracted for $4000 worth of office furniture "on behalf of Seymour Holdings Ltd.," prior to incorporation. After incorporation, the new directors want to ensure that the corporation is bound. They will be able to do so if
A) the corporation ratifies the contract and ratification is permitted in the jurisdiction.
B) the promoter intended that the corporation, and not himself, would be bound by the contract.
C) the promoter made it clear that he was signing on behalf of the corporation.
D) the corporation is closely held and the promoter is a director.
E) the promoter was acting in the best interests of the corporation to be formed.
Correct Answer:
Verified
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