Enforcing pre-incorporation contracts entered by company

Assignment Help Business Law and Ethics

Reference no: EM13824912

Problem:

Will is a keen student of business and wants to start a new company specializing in re-cycling. He is unsure of the legal status of a pre-incorporation contract but prior to registering his new company Wills Re-cycling Pty Ltd he signs a contract to purchase a one hectare piece of land near the new freeway being built in the eastern suburbs of Melbourne where he proposes to run his new business.

Soon after signing the contract Wills Re-cycling Pty Ltd is registered. Unfortunately for Will the company cannot obtain finance to complete the purchase of the land. Advise Will of his possible liability in this transaction at common land and under the Corporations Act 2001.

Additional Information Regarding Question:

This question belongs to Law as well as it explains about a new company being established. The company enters in contract to purchase a piece of land after the incorporation. After company incorporation, the company fails to obtain finance to purchase the land. The options open to the company have been stated in the solution.

Total Word Limit: 67 Words

Reference no: EM13824912

Questions Cloud

Prepare journal entries for the given transactions : Jasmine Company has established a petty cash fund for small expenditures. Prepare journal entries for the following transactions

Forcefully changing proprietary company to public company : When would a proprietary company consider becoming a public company? Can a proprietary company be forced to change its status?

Write review on topic of strategic human resource management : Develop a literature review on the topic of strategic human resource management. The paper requires you to develop a short report of around 3-5 pages on the current thinking and research in the area.

Prepare chao end-of-period adjustment : discuss about prepare Chao's end-of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debit balance

Enforcing pre-incorporation contracts entered by company : Will is a keen student of business and wants to start a new company specializing in re-cycling.

Identify major american employment-related laws : Identify major American employment-related laws and regulations and include a clear and comprehensive interpretation of these laws as they apply to Pomodoro, Inc.

Research analysis on intermodal and intramodal transfer : Research Analysis on Intermodal and Intramodal Transfer of Passenger and Cargo Security under State Government Transport System

Prepare journal entries to record the given transactions : Assuming that the allowance method is being used, prepare journal entries to record the following transactions

Effect of changing company limited by guarantee : What is a company limited by guarantee and what are its characteristics? Explain the procedure for a company limited by guarantee to change to a company limited by shares. Also explain the effect of such a change.

User Account

All Pages