In a novation by the board of a pre-incorporation contract involving the corporation,the promoter,and a third party:
A)the corporation is released from liability.
B)the promoter is released from liability.
C)the promoter is made secondarily liable.
D)none of the above

Question

Quizplus · Accepted Answer

In a novation involving a pre-incorporation contract, the corporation agrees to replace the promoter in the contract, thereby releasing the promoter from liability. This process requires the agreement of all parties involved, including the third party.

In a Novation by the Board of a Pre-Incorporation Contract