Daud and Idham decided to form a company called Daham Sdn Bhd (the company). After the relevant documents for registration had been submitted to the Companies Commission of Malaysia, Daud, the promoter of the company purchased a premise from Zain for Rm500,000 on behalf of company. After the company was issued with the certificate of incorporation, Daud sold the premise to the company for the same price.

Explain how the contract done by Daham Sdn Bhd through Daud can be valid under the Companies Act 2016.