Question

Preliminary Contracts are signed

(a) before the incorporation

(b) after incorporation but before capital subscription

(c) after incorporation but before commencement of business

(d) after commencement of business

Answer 1

Preliminary contracts are signed between the promoters and the third party during the promotion of a company. As they are signed during the first stage of a company’s promotion, they are said to be signed before the incorporation of a company.

Hence, the correct answer is option (a).