Abstract
A pre-incorporation contract is formed prior to the incorporation of a company. A company has the capacity to enter into a contract only when it has been formally incorporated and has acquired the status of separate legal entity. Thus, a pre-incorporation contract is entered into by a promoter on behalf of a proposed company and the contractor. The purpose of this paper is four-fold. First, to state, that there are three main risks in a pre-incorporation contract. Second, to discuss the rules which have been applied by the courts to allocate these risks. Third, to consider briefly so as to how pre-incorporation contracts are dealt with in the USA. Finally, to examine and evaluate the legal position of pre-incorporation contracts in UK, Hong Kong and China and that whether these risks have been allocated efficiently in the said jurisdictions.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
