Sara decided to incorporate her business under the name Gomo,Inc.Before Gomo was incorporated,Sara signed a contract in the name of Gomo,Inc.to lease a store front.Sara did not tell the other party that Gomo was not yet formed.Sara is personally liable on the lease.

Question

Quizplus · Accepted Answer

Since Gomo,Inc. was not yet incorporated at the time of the contract, the contract was signed by Sara personally. Therefore, she is personally liable for the lease as she signed it in her name and not on behalf of the corporation.

Sara Decided to Incorporate Her Business Under the Name Gomo,Inc