Full question:
How can I get a property under contract, in order to sell to my investors without taking title?
- Category: Corporations
- Subcategory: Other
- Date:
- State: Texas
Answer:
A promoter is someone who starts a business, especially a corporation, and handles its financing. The process begins with an idea, which the promoter develops into a corporation through various pre-incorporation activities. Promoters typically seek business opportunities, raise capital, find investors, and enter contracts on behalf of the corporation being formed.
However, a corporation is not legally bound by contracts made by promoters before it is officially incorporated. Until the articles of incorporation are filed and approved, the corporation does not exist and cannot enter into contracts. Therefore, any contracts made by promoters in their own name do not automatically become the corporation's contracts upon incorporation.
Once the corporation is formed, it can adopt the pre-incorporation contracts made by promoters or benefit from them, which may create liability for the corporation. However, it cannot assume obligations from contracts that are beyond its legal powers (ultra vires). In summary, while a corporation can eventually take on pre-incorporation contracts, it must do so through proper legal channels after its formation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.