WHAT ARE PRE-INCORPORATION CONTRACTS?
These are contracts entered into by a third party on behalf of a company
which has not yet been formed. A pre-incorporation contract is binding on the
third party who is acting on behalf of the unformed company.
· A pre-incorporation contract is a contract entered into on behalf of a company before its incorporation
· Until the company is incorporated, the company is therefore non existent
· A non existent company is incapable to enter into contracts by itself and is unable to hire agents on its accord