MCQ 11 Mark
Preliminary Contracts are:
- Abinding on the company
- Bbinding on the guarantor
- Cnot binding on the company
- Dbinding on the promoters
Answer
View full question & answer→(C) not binding on the company
Explanation:
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.
Explanation:
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.