The majority of courts view a stock subscription as merely an offer that cannot be accepted until:
A) the corporation enters a novation with the subscriber.
B) the promoter signs in the name of the corporation.
C) the corporation comes into existence.
D) there is a written agreement.

Question

Quizplus · Accepted Answer

The majority of courts view a stock subscription as merely an offer until the corporation comes into existence. Once the corporation is formed, it can accept the subscription offer and issue the stocks to the subscriber. A novation or written agreement is not necessary for acceptance. Promoters cannot sign on behalf of the corporation as they are not authorized to do so until the corporation is formed.

The Majority of Courts View a Stock Subscription as Merely