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Essay

Law

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Issue:

English

 

Written by:

Thomas D

 

Date added:

March 17, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 317

 

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4195 times

 

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Essay content:

Also; the pre-incorporation contracts cannot bind the company. In this case, Bosco is the promoter who is on behalf of Bozo Limited to sign the tenancy agreement. However the contract was signed before Bozo Limited was corporated. Therefore, this tenancy agreement is a pre-incorporation contract which the company cannot sue or be sued in this pre-incorporation contract...
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(Case: Newborne v Sensolid (GB) Ltd [1954] ) Secondly, the company cannot ratify the pre-incorporation contract after its incorporation. But the pre-incorporation can bind the promoters; they may be personally liable on a pre-incorporation contract unless the parties to the contract specifically stipulate in the contract that the promoters will not be liable under Common law position...
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