Are pre-incorporation contracts legally binding? | ScriptaLegal
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Frequently asked questions > Company > Business Corporation > What about the contracts signed for and on behalf of the business corporation before its constitution or incorporation?

What about the contracts signed for and on behalf of the business corporation before its constitution or incorporation?

Both in Canada and in Quebec, a person can sign a contract for and on behalf of a business corporation to be constituted or incorporated. This person will however be bound personally by the contract until the business corporation, after its constitution or its incorporation, ratified it. The business corporation will then become bound by the contract, while the person having signed it shall no longer be bound.

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