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Lee decided to incorporate a business under the name yStar Inc. Before yStar was incorporated, Lee signed a contract in the name of yStar Inc.
Lee decided to incorporate a business under the name yStar Inc. Before yStar was incorporated, Lee signed a contract in the name of yStar Inc. to have some office space remodeled. Which of the following statements is correct?
a. | yStar is liable on the contract because the contract was signed in its name. | |
b. | yStar becomes liable on the contract as soon as it is incorporated. | |
c. | yStar is liable on the contract if the contractor knows that the corporation does not yet exist. | |
d. | yStar will be liable on the contract only if the corporation adopts the contract. |
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