1. The parties who are bound by a company's articles are: the company who is bound...

1. The parties who are bound by a company's articles are: the company who is bound to the members, the members who are bound to the company and the members who are bound to the other members in their capacity as members.

True

False

Amy is the promoter of Enrich Ltd. Before the company is incorporated, she enters into a contract purportedly on behalf of Enrich Ltd with Comicon PLC. After the certificate of incorporation is issued, the contract is breached. Who is liable?

Amy

Comicon PLC

Enrich Ltd

A company can confirm a pre-incorporation contract by performing it or obtaining benefits from it

True

False

An accountant or solicitor acting in their professional capacity during the registration of a company may be deemed a promoter.

True

False

A pre-incorporation contract is a contract made in a company's name before it is formed. Companies are bound by such contracts as they do not exist when the contracts are made

True

False

Solutions

Expert Solution

1) TRUE, The Articles of Association (AOA) of the company states that the parties who are bound by the company's articles are also bound to its members and if company breach or do violations of their rights, the company and its members will be liable for the Act.

2) Enrich Ltd., Since the Amy has entered into contract before the incorporation of the Enrich ltd Co. with the Comicon PLC and the contract is breached then the Co. (Enrich Ltd.) would be liable if the company has accepted the contract which was contracted by the Amy. Then, the Comapny would be solely liable to Comicon Ltd.

3) TRUE, The company can perform Pre-Incorporation contracts and can obtains benefits form it. if the company bears any loss they do have to suffer from the same.

4) FALSE, An Accountant or a Solicitor in their professional capacity during the registration of company cannot be deemed as Promoter of Company as the promoter would be any person who have vested personal interest in the business.

5) FALSE, The Pre-Incorporation Contract made by the company before incorporation would be bound to the other parties (Contractee), if the Contractor and the contractee has agreed to continue the contarct after incorporation of business. The contract would be bound by the two of them.

ekkarill92 answered 1 year ago

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