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Preliminary Contracts are
  • a)
    Not binding on the Company
  • b)
    Binding on the
  • c)
    Binding on the company
  • d)
    Binding on the Company, if ratified after incorporation
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Preliminary Contracts area)Not binding on the Companyb)Binding on thec...
Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. ... Such contracts are legally not binding upon the company even after it comes into existence.
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Community Answer
Preliminary Contracts area)Not binding on the Companyb)Binding on thec...
Preliminary contracts are the contracts entered into by the promoters with third parties on behalf of the company , before its incorporation..that's why are not bound to company even after its incorporation because they are not legally binded on the company
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Preliminary Contracts area)Not binding on the Companyb)Binding on thec)Binding on the companyd)Binding on the Company, if ratified after incorporationCorrect answer is option 'A'. Can you explain this answer?
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