Question

Preliminary Contracts are signed (a) Before the incorporation (b) After incorporation but before capital subscription (c) After incorporation but before (d) After commencement of commencement of business business

Answer 1

Explanation:

(Q) Preliminary Contracts are signed

(a) before the incorporation

(b) after incorporation but before capital subscription

(c) after incorporation but before commencement of business

(d) after commencement of business

Answer (a) Preliminary contracts are pre-incorporation contracts.

Answer 2

Option A. Preliminary Contracts are signed Before the incorporation.

1. Preliminary contracts are generally signed betwixt the promoters and the opponent third party during the time of promotion or publicity of a company.

2. As they are signed during the primary phase of a company's or enterprise's promotion and publicity, they are told to be signed prior to the incorporation of an enterprise.

3. Preliminary contracts present or deliver as a formal attestation of skepticism and might have more legal force than precipitate on their own.

Hence, the correct answer will be the option before the incorporation.

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