Pre-incorporation contracts

Topic preview

1. 01

   No company before incorporation

   Say, in one sentence, why a company cannot itself contract before it is incorporated.

2. 02

   Promoter signs personally

   If a founder signs a lease or supply agreement for a company that has not yet been formed, who is initially on the hook and why?

3. 03

   Incorporation does not bind

   Once the company is incorporated, does that alone make the earlier contract binding on the company? Give the correct answer and the reason.

4. 04

   Fresh contract after incorporation

   What must happen after incorporation if the company is to become bound by the deal the promoter negotiated?

5. 05

   Landlord cannot treat company bound

   A client says, 'The company starts next week, so the landlord can just treat the company as tenant now.' What warning do you give?

6. 06

   Avoid promoter liability

   What drafting or signing step would you recommend to reduce the risk of promoter liability in a pre-incorporation negotiation?

7. 1 more building block

   The full topic unlocks with FLK1 Playbook, including the remaining prompts and answer-key marking.