Question: Ajouelo signed an employment contract with Wilkerson. The contract stated: Whatever company, partnership, or corporation...

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Question: Ajouelo signed an employment contract with Wilkerson. The contract stated: "Whatever company, partnership, or corporation that Wilkerson may form for the purpose of manufacturing shall succeed Wilkerson and exercise the rights and assume all of Wilkerson's obligations as fixed by this contract." Two months later, Wilkerson formed Auto-Soler Co. Ajouelo entered into a new contract with Auto-Soler providing that the company was liable for Wilkerson's obligations under the old contract. Neither Wilkerson nor the company ever paid Ajouelo. He sued Wilkerson personally. Does Wilkerson have any obligations to Ajouelo? Strategy: A promoter is not liable for a contract he signed on behalf of a yet-to-be- formed corporation if the third party (in this case, Wilkinson) agrees to a novation. (See the "Result" at the end of this section.)