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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.

Under section 45 of the Companies Act 2014 (the ?Act?), a pre-incorporation contract is any contract or other transaction (including any application to any lawful authority) purporting to be entered into by a company prior to its incorporation, or by any individual(s) on behalf of the company prior to its incorporation ...

Pre-incorporation agreements, also known as promoters' agreements, outline a corporation's operations, responsibilities, and ownership before it is formally established. This type of agreement is usually made between the individuals (often referred to as promoters) involved in setting up the corporation.

These contracts are valid in the name of promoters and are known as pre-incorporation contracts. Pre incorporation contracts or preliminary contracts are made by promoters of the company on behalf of the company before its incorporation for acquiring some property or rights for the company.

Whereas a Shareholders' Agreement may be executed at any given moment during the life of a company, the most appropriate course of action is to sign same prior to the incorporation thereof for the purposes of laying the foundations of the future relationship between the Shareholders and to that end to avoid ...

Ratification is done when a company confirms the pre-registration contract expressly or impliedly such as making a payment for the contracted amount.