pre-incorporation contract

pre-incorporation contract

a contract made or purporting to be made by a person acting on behalf of a company that has not yet been formed. Such a person is personally liable on such a contract.
References in periodicals archive ?
An example may be where the other party continues to deal with the company on the terms of the pre-incorporation contract.
If, notwithstanding this risk, individuals do decide to enter into pre-incorporation contracts other than those required in connection with a company's formation then we would certainly advise that following the company's formation the company, the individuals who signed for and on behalf of the company and the other party to that contract enter into some form of written acknowledgement that the company itself is bound in place of those individuals who signed for and on behalf of the company prior to its incorporation, i.
As such the plaintiffs state that the foregoing contract constituted a pre-incorporation contract.