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Last month a cycling enthusiast incorporated an online bicycle accessories shop. He is the sole director and he and a friend are the only shareholders.
Prior to incorporation of the company, the enthusiast negotiated a contract with a provider of cycling clothing. The contract was signed, prior to the receipt of the certificate of incorporation, by the enthusiast in his own name, on behalf of the company.
With whom, if anyone, does the benefit of the contract reside?
A. The company only.
B. The shareholders only.
C. The enthusiast only.
D. The enthusiast and the company jointly.
E. No one, the contract is void.
C - The enthusiast only.
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Find out what happens after passing the SQE and admission to the roll of solicitors.