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pre-incorporation contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › pre-incorporation contract

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • June 26, 2016 at 9:33 am #324114
    sasha
    Member
    • Topics: 99
    • Replies: 141
    • ☆☆☆

    the contract can not be ratified after incorporation. what does this mean?

    June 26, 2016 at 9:53 am #324121
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    A principal, under the laws of agency, is able to ratify a contract made on the principal’s behalf by an agent that had no authority. That only applies where, at the time the agent entered the contract, the principal existed and had contractual capacity

    You can’t enter a contract on behalf of your unborn child for the child (after birth) then to ratify that contract because at the time you entered the contract, the child did not exist as a contractually-able person

    Now, instead of a child, put an unincorporated entity into the child’s position

    Is that better?

    June 26, 2016 at 12:22 pm #324135
    sasha
    Member
    • Topics: 99
    • Replies: 141
    • ☆☆☆

    ok thank you sir

    June 26, 2016 at 12:30 pm #324140
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    You’re welcome

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