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Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?
- a)Preliminary contracts
- b)Provisional contract
- c)Prospectus
- d)Memorandum of association
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Which of the following contract is signed by the promoters with the th...
Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. They generally enter into these contracts as agents or trustees of the company, which has not yet come into existence.
Most Upvoted Answer
Which of the following contract is signed by the promoters with the th...
Preliminary is nothing but other expenses....preliminwry contracts are the contrcats signed by the promoters with the third party on behalf of the company...
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Which of the following contract is signed by the promoters with the th...
Preliminary contracts are signed by promoters with third parties on behalf of the proposed company.
Explanation:
Preliminary contracts are legal agreements that are signed during the pre-incorporation stage of a company. These contracts are signed by the promoters, who are individuals or entities responsible for the formation and establishment of the proposed company.
When a company is being formed, the promoters negotiate and enter into various agreements with third parties to secure the necessary resources, services, or assets required for the company's operations. These agreements may include contracts for the purchase of land or property, lease agreements, agreements with suppliers or service providers, or any other contracts that are essential for the company's functioning.
The promoters sign these preliminary contracts on behalf of the proposed company because at the pre-incorporation stage, the company itself does not yet exist as a legal entity. Therefore, the promoters act as agents for the future company and assume the obligations and responsibilities outlined in the contracts.
The purpose of these preliminary contracts is to ensure that the necessary arrangements are in place for the proposed company once it is incorporated. They provide a framework for the future operations of the company and help in securing the required resources and services.
It is important for the promoters to carefully consider and negotiate the terms and conditions of these contracts, as they will bind the company once it is incorporated. The terms should be fair, reasonable, and in the best interest of the company.
In summary, preliminary contracts are signed by the promoters on behalf of the proposed company to secure necessary resources, services, or assets during the pre-incorporation stage. These contracts lay the foundation for the company's operations and obligations once it is incorporated.
Explanation:
Preliminary contracts are legal agreements that are signed during the pre-incorporation stage of a company. These contracts are signed by the promoters, who are individuals or entities responsible for the formation and establishment of the proposed company.
When a company is being formed, the promoters negotiate and enter into various agreements with third parties to secure the necessary resources, services, or assets required for the company's operations. These agreements may include contracts for the purchase of land or property, lease agreements, agreements with suppliers or service providers, or any other contracts that are essential for the company's functioning.
The promoters sign these preliminary contracts on behalf of the proposed company because at the pre-incorporation stage, the company itself does not yet exist as a legal entity. Therefore, the promoters act as agents for the future company and assume the obligations and responsibilities outlined in the contracts.
The purpose of these preliminary contracts is to ensure that the necessary arrangements are in place for the proposed company once it is incorporated. They provide a framework for the future operations of the company and help in securing the required resources and services.
It is important for the promoters to carefully consider and negotiate the terms and conditions of these contracts, as they will bind the company once it is incorporated. The terms should be fair, reasonable, and in the best interest of the company.
In summary, preliminary contracts are signed by the promoters on behalf of the proposed company to secure necessary resources, services, or assets during the pre-incorporation stage. These contracts lay the foundation for the company's operations and obligations once it is incorporated.
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Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?a)Preliminary contractsb)Provisional contractc)Prospectusd)Memorandum of associationCorrect answer is option 'A'. Can you explain this answer?
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