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Before a company is incorporated, it has no legal existence. ingly, it has no capacity to enter into a contract. The company cannot sue or be sued on a pre-incorporation contract. However, persons who conclude contracts for the unborn company can be held personally liable on such contracts.

There are various types of pre-incorporation contracts that can be made by a company ing to their need before incorporation, such as a lease agreement, employment agreement, founder's agreement, shareholder agreement, etc.

Pre-incorporation contracts are contracts signed by an individual on behalf of a corporation that has not yet been incorporated. A corporation must file the necessary paperwork with the Secretary of State to be incorporated.

Provisional Contracts - These are the contracts entered into by a company after obtaining Certificate of Incorporation but before becoming eligible to commence business. Such contracts are not legally binding upon the company until it becomes eligible for the commencement of business.

A basic binding contract must comprise four key elements: offer, acceptance, consideration and intent to create legal relations.

Pre incorporation contracts are those contracts that are necessary to run a business or incorporation. When promoters make pre-incorporation contracts, the company is just an artificial entity which means at that time, the company does not exist. So basically, it cannot be executed at the time of incorporation.