CA PCC/PCE - Group I : Law Ethics and Communication - November 2009 - 2 c i

Pick out the correct answer from the following and give reasons:

Contracts which are entered into, by agents or trustees on behalf of a prospective company before it has come into existence are called:

(1) Provisional contracts
(2) Pre–incorporation contracts
(3) Both provisional and pre–incorporation contracts
(4) None of the above.

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