Abdoulie Sarr was a promoter of a company called LLB Electricals Limited. Six months prior to the registration of the company Abdoulie Sarr signed a contract on behalf of LLB Electricals Limited for D50,000.00 per month for one year as payment of rent for the company from Sarr’s Estate and Property Management. Abdoulie Sarr is the sole Director and proprietor of Sarr’s Estate and Property Management. When LLB Electricals Limited was eventually incorporated, it refused to honor the contract signed by Abdoulie Sarr on its behalf. a. Discuss the instances under which a company is bound by a contract entered into by a promoter on its behalf if any. b. Is there any remedy available to Sarr’s Estate and Property Management? Give reason (s) for your answer. c. With reference to the Company’s Act 2013, explain the duty imposed on Abdoulie Sarr and discuss whether that duty was discharged.
Abdoulie Sarr was a promoter of a company called LLB Electricals Limited. Six months prior to the registration of the company Abdoulie Sarr signed a contract on behalf of LLB Electricals Limited for D50,000.00 per month for one year as payment of rent for the company from Sarr’s Estate and Property Management. Abdoulie Sarr is the sole Director and proprietor of Sarr’s Estate and Property Management. When LLB Electricals Limited was eventually incorporated, it refused to honor the contract signed by Abdoulie Sarr on its behalf.
a. Discuss the instances under which a company is bound by a contract entered into by a promoter on its behalf if any.
b. Is there any remedy available to Sarr’s Estate and Property Management? Give reason (s) for your answer.
c. With reference to the Company’s Act 2013, explain the duty imposed on Abdoulie Sarr and discuss whether that duty was discharged.
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