The XYZ Corporation was to be formed by Peter, a promoter. To operate the corporation after incorporation, it was necessary for Peter to lease certain facilities. Peter executed a lease in the corporate name for office space without revealing to the lessor that the corporation had not yet been organized. The corporation subsequently came into existence, and the board declined to accept the lease of office space that Peter had executed in the corporate name.

a. Can the corporation validly decline the lease of office space? Explain.

b. Does Peter have any liability on any of the leases he made? Explain.