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Mickey and Minnie Decide to Form a Company Called Mouse

Question 9

Multiple Choice

Mickey and Minnie decide to form a company called Mouse Enterprises Pty Ltd (Mouse) to undertake a business selling a newly designed mouse trap. Before the company is registered, Mickey enters into a contract on behalf of Mouse with Cat Pty Ltd for the purchase of office supplies. Which of the following is incorrect:


A) If Mouse, or a company reasonably identifiable with it, is never registered, Mickey may be liable to Cat Pty Ltd for damages.
B) If Mouse was registered, Mickey and Minnie would both be regarded as promoters of Mouse.
C) If Mouse was registered and didn't ratify the contract with Cat Pty Ltd, both Minnie and Mouse could be liable to Cat Pty Ltd for damages under section 131 of Corporations Act 2001 (Cth) .
D) If Mouse was registered, it could ratify the contract by its directors passing a resolution.
E) None of the above as all the above are correct.

Correct Answer:

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