Preliminary Contracts Are Signed

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Solution

(A) Before the incorporation

(B) After incorporation but before the capital subscription

(C) After incorporation but before the commencement of business

(D) After the commencement of business

Correct Answer: Option (A) Before the incorporation

The preliminary contracts are signed before the incorporation.

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Similar questions

Preliminary Contracts are signed

(a) before the incorporation

(b) after incorporation but before capital subscription

(d) after commencement of business

Preliminary Contracts are

(a) binding the company

(b) binding on the company, if ratified after incorporation

(d) not binding on the company

A company can ratify preliminary contracts after incorporation.

A provisional contract is signed by promoters before the incorporation of the company.

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