Marcia and Greg decide to form a company called Brady Ltd for the purpose of undertaking a business selling used Rolex watches. Marcia and Greg arrange for a number of their friends to invest in the company.In addition, Marcia and Greg agree that they will each sell their personal Rolex watch collection to the company for $100,000 and $250,000, respectively. They had previously purchased the watches for $15,000 and 200,000, respectively.

Prior to forming the company, Marcia meets her friend Cindy who says that she needs money and wants to pawn her diamond Rolex watch. Marcia said that she would be happy to buy the watch in the name of the company.They agree to a contract whereby the yet-to-be-formed Brady Ltd will purchase the watch for $1,000,000.00.

Shortly after the discussion with Cindy, the company is formed.The directors of the company are Marcia, Greg and their friends Peter, Mike and Carol. At the first board meeting, Marcia and Greg recuse themselves and Peter, Mike and Carol agree that the company should purchase both Marcia's and Greg's collection of Rolex watches for $100,000 and $250,000, respectively.

1. If Brady Ltd proceeds to purchase the watches from Marcia and Greg, would they bear any liability as promoters?

2.Can Brady Ltd enforce the contract with Cindy for the purchase of her diamond Rolex watch?