Liz, Don, Mike and Rachel are setting up a business teaching martial arts. They wish to form a private limited company. They each have 5,000 to invest in the company. They would all like to be directors as well as shareholders of the company.

A)Don has found a sports hall to use as a venue for the classes. He has signed a contract with the sports hall, on behalf of the company, even though the company does not yet legally exist. Will this cause any problems? If so - what should Don have done instead?