State THREE features of a pre-incorporation contract. (3 marks)

  • Parties to the pre-incorporation contract: The contract involves individuals or entities acting on behalf of a company that has not yet been formed.
  • Subject-matter of the pre-incorporation contract: The contract typically relates to matters that are intended to benefit the future company.
  • Chronology: Every pre-incorporation contract is made before the company is formed.

[Any 3 points at 1 mark each for a total of 3 marks]