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Multiple Choice Question: Preliminary Contracts are -

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प्रश्न

Multiple Choice Question:

Preliminary Contracts are

पर्याय

  • binding the company

  • binding on the company, if ratified after incorporation

  • binding on the company after the incorporation

  • not binding on the company

MCQ

उत्तर

Preliminary contracts are signed between the promoters and the third party during the promotion of a company. As they are signed before the incorporation of a company, they are not regarded as binding on the company. The company cannot ratify these contracts and are not forced to honour them.

Hence, the correct answer is option not binding on the company.

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Promotion of a Company
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