Sam is a promoter acting on behalf of a corporation that has not yet been fully incorporated.Under the Revised Model Business Corporation Act,if Sam acts on behalf of the yet-to-be-formed corporation,who is liable in the event of a breach of contract?

Question

Quizplus · Accepted Answer

A) Promoters like Sam may act on behalf of a corporation as it is forming but will
have some personal liability for liabilities incurred. Once the corporation is formed, the corporation becomes liable, with the promoter's liability ceasing the moment formation occurs.
t) Promoters like Sam may act on behalf of a corporation as it is forming but will have some personal liability for liabilities incurred. Once the corporation is formed, the corporation becomes liable, with the promoter's liability ceasing the moment formation occurs.
u) Promoters like Sam may act on behalf of a corporation as it is forming but will have some personal liability for liabilities incurred. Once the corporation is formed, the corporation becomes liable, with the promoter's liability ceasing the moment formation occurs.
v) Promoters like Sam may act on behalf of a corporation as it is forming but will have some personal liability for liabilities incurred. Once the corporation is formed, the corporation becomes liable, with the promoter's liability ceasing the moment formation occurs.

Sam Is a Promoter Acting on Behalf of a Corporation