A clause in a contract that states that a promoter of a contract will cease to be liable under the contract once a corporation has adopted it,is called:
A)an automatic novation clause.
B)an automatic agency clause.
C)an incorporation clause.
D)a bylaws clause.

Question

Quizplus · Accepted Answer

A section in a preincorporation contract that reads that the promoter's liability terminates upon the corporation adopting the contract is called an automatic novation clause.

A Clause in a Contract That States That a Promoter