Preliminary contracts are signed _________.

Before the incorporation

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After incorporation but before capital subscription

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After incorporation but before commencement of business

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After commencement of business

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Solution

The correct option is A Before the incorporation
A preliminary contract is the contract that obligates both the parties to sign the final contract. Preliminary contracts are basically pre- incorporation contract.

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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

Stages in the formation of a public company are in the following manner

(a) Promotion, Commencement of business, Incorporation, Capital Subscription

(b) Incorporation, Capital Subscription, Commencement of business, promotion

(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

(a) Promotion, Commencement of Business, Capital

(d) Capital Subscription, Promotion, Incorporation,

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

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