In litigation involving a promoter,one of the parties named in a contract is described as an entity yet to be incorporated.Under what circumstances will a court find the promoter NOT to be personally liable?
A) if a specific advantage of a valuable business opportunity exists
B) if a specific provision expressly relieves such liability
C) if the corporation has committed a crime
D) if the directing mind has committed a crime

Question

Quizplus · Accepted Answer

A promoter can be relieved from personal liability if the contract specifically includes a provision that expressly relieves the promoter of such liability. This would need to be a clear and explicit term within the contract itself.

In Litigation Involving a Promoter,one of the Parties Named in a Contract