tutorial 4(question 4)
TRANSCRIPT
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* Tutorial 4(question 4)Cepat Cetak Bhd cannot enter into contracts before its
incorporation because the company did not exists before its incorporation.
At common law, a company is not bound by a contract made before its corporation
The promoter cannot legally enforce payment from the company for services render or expenses incurred because at that time the company was not yet in existence and therefore incapable of incurring any contractual liability
Such contracts entered into by the company are null and void,and cannot be ratified-Newborne v Sendolid Ltd
If a promoter intended to be personally liable on the contract and contracted as a principal,then he may be liable-Kelner Baxter(1866)
Thus, Cepat Cetak Bhd was not liable.But Kay Poh to be personally liable and no ratification was possible.