Ask Question
2 February, 13:21

Following the formation of a corporation, which of the following terms best describes the process by which the promoter is released from, and the corporation is made liable for, preincorporation contractual obligations?

A. Assignment.

B. Novation.

C. Delegation.

D. Accord and satisfaction.

+2
Answers (1)
  1. 2 February, 15:29
    0
    The correct option is option B

    Novation.

    Explanation:

    Novation is the substitution of a new contract in place of an old one. It is the act of replacing an obligation to perform with another obligation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Following the formation of a corporation, which of the following terms best describes the process by which the promoter is released from, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers