Which of the following is correct?

A is about to register a new company limited by shares, “A Ltd”, in order to carry on a retail business. A has ordered a quantity of goods from a supplier “for and on behalf of A Ltd”.

Which of the following is correct?
A . A Ltd is liable to pay for the order as soon as it is registered.
B . A is personally liable for the order.
C . The contract is void.
D . A Ltd can ratify the contract following registration.

View Answer

Answer: B