A clause in a contract that states that a promoter of a contract will cease to be liable under the contract once a corporation has adopted it,is called:

Name: A clause in a contract that states that a promoter of a contract will cease to be liable under the contract once a corporation has adopted it,is called:
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A section in a preincorporation contract that reads that the promoter's liability terminates upon the corporation adopting the contract is called an automatic novation clause.

A Clause in a Contract That States That a Promoter