Question

Q.7 Aditya is promoting a company. Before the company is formed, he enters into a contract with DLF for purchase
of land and also agreed to pay 10 crores within a period of 2 moths. The company was formed within 1 month. On
the basis of the facts, answer the following :-
Which type of contract is entered by Aditya ?
Is the contract legally binding on the company ?
Can OLF Ltd, hold Aditya liable for the payment money?
(iv)
What can the company do to prevent Aditya from such a situation? (4 marks)​

Answer 1

Answer:

Before the company is formed, he enters into a contract with DLF for purchase of land and also agreed to pay 10 crores within a period of 2 .

Answer 2

Answer:

(i) pre liminary contract (ii) no (iii) yes (iv) the company can make a provisional contract after incorporation