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Don entered into a contract in the company’s name
To develop a particular patent, which the board of directors of eden wishes to pursue but in relation to which the third party does not wish to proceedIdentify whether the following contract is enforceable or not
ANS:unenforceable
I did enforceable because the promoter can enforce it if not the board of directors. The qs didnt specify enforceable by whomRija, in future could you please give me the entire question? Without knowing that Don is the promoter of a new company called Eden, it’s difficult to see where this question is going!
IF Don had entered into the contract in his own name (in preparation to sell it to the company after formation) yes, the contract would have been enforceable. The fact is that Don has no representative capacity in relation to a company that does not (by definition) exist. And, because the company does not exist at the date of Don’s actions in entering a contract, (Don entered into a contract in the company’s name), neither Don nor Eden can have any rights of enforcement.
Is that ok?
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