A promoter who enters a preincorporation contract in the name of the corporation usually remains liable on the contract even if the corporation adopts it.

Question

Quizplus · Accepted Answer

A promoter who enters into a preincorporation contract on behalf of a corporation that has not yet been formed generally remains personally liable on that contract, even if the corporation later adopts the contract, unless there is an agreement to the contrary that explicitly releases the promoter from liability.

A Promoter Who Enters a Preincorporation Contract in the Name