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What does the delaying of completion of contract actually mean?
I know that the contract is formed at the point of agreement (offer and acceptance)
So does delaying mean you do not accept or you do not give an offer by word?
No – delaying the COMPLETION of the contract means that, for whatever reason, one of the parties is unable to complete their responsibilities within the time frame determined by the contract.
For example, if I were to undertake to build a house for you, I may face unforeseeable delays – workers going on strike, inability to obtain necessary materials because of some outside influence such as the Government putting an embargo on foreign goods, an unseasonably long spell of bad weather
OK?
This was for how promoters could avoid liability for pre-incorporation contracts.
So the way that a promoter can avoid being held personally liable for pre-incorporated contracts would be to delay the completion of whatever his contractual obligation that he has to perform is? e.g if he had to complete building of a wall, he would wait the completion intentionally until after the company was incorporated and the company had the legal capacity to enter into contract as a seperate legal entity?
If you had told me the context of the question, I could have answered it more appropriately!
Where a promoter is taking steps to avoid the possibility of excessive personal liability (where s/he enters into a contract on behalf of the as-yet-unborn company) s/he may instead negotiate a draft agreement with a third party but not sign it
When the company is subsequently formed, s/he can go back to that third party and say “Are you still ready to go ahead with that draft agreement? But this time I’ll sign it (complete the formalities for forming a contract) in the name of this new company thatI’ve just created”
Of course, the third party is the in a position to say “No, I’m not happy with that. Let’s re-negotiate the proposed terms and start again”
OK?
And please, next time, put your question into context to give me a fighting chance of responding appropriately!
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