• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

Novating a Contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Novating a Contract

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Vijay.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 8, 2021 at 6:50 am #623812
    tabasumze
    • Topics: 37
    • Replies: 52
    • ☆☆

    What does novating a contract mean?

    How does the promoter avoid liability on pre incorporation contracts by novating the contract?

    Would you please explain it.
    Thanks in advance.

    June 22, 2021 at 9:42 am #626044
    Vijay
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi Tabasumze

    To novate a contract is essentially to enter into a new contract. In the context of a Promoter, this would be where after the company has been formed the Promoter now a director would approach the other contracting party and enter a new contract which replaces the old pre incorporation contract. But this can only be done with the approval of both contracting parties. The new contract would be in the name of the company and not the individual Promoter and that is how they avoid personal liability.

    Kind regards,

    Vijay

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Labour – Gross and net earnings
  • John Moffat on PM Chapter 9 Questions Short-term decision making
  • mantibilili on Labour – Gross and net earnings
  • 2dop on PM Chapter 9 Questions Short-term decision making
  • Colman@baraka on Inventory (IAS 2) – ACCA (SBR) lectures

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy