Before a corporation comes into existence:

Name: Before a corporation comes into existence:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the corporation comes into existence,it is not automatically liable on the contracts made by the promoter.As indicated above,the corporation cannot be liable as principal since it was not in existence.The same fact prevents the corporation from ratifying the promoter's contracts; ratification requires capacity to contract at the time the contract was made.

Before a Corporation Comes into Existence