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Preliminary Contracts are signed
  • a)
    After commencement of commencement of business business
  • b)
    After incorporation but before capital subscription
  • c)
    Before the incorporation 
  • d)
    After incorporation but before
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Preliminary Contracts are signeda)After commencement of commencement o...
Contracts signed by promoters with third parties before the incorporation of company. Contracts signed after incorporation but before commencement of business. These are not legally binding on the company and cannot be ratified after incorporation. They can only be undertaken by public company.
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Preliminary Contracts are signeda)After commencement of commencement of business businessb)After incorporation but before capital subscriptionc)Before the incorporationd)After incorporation but beforeCorrect answer is option 'C'. Can you explain this answer?
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