Preincorporation. Cummings, Okawa, and Taft arerecent college graduates who want to form a corporation tomanufacture and sell digital tablets. Peterson tells them he willset in motion the formation of their corporation. First, Peterson makes a contract with Owens for the purchase of a pieceof land for $20,000. Owens does not know of the prospectivecorporate formation at the time the contract is signed. Second,Peterson makes a contract with Babcock to build a small planton the property being purchased. Babcock’s contract is conditional on the corporation’s formation. Peterson secures allnecessary subscription agreements and capitalization, and hefiles the articles of incorporation. (See Formation and Powers.)
Preincorporation. Cummings, Okawa, and Taft are
recent college graduates who want to form a corporation to
manufacture and sell digital tablets. Peterson tells them he will
set in motion the formation of their corporation. First, Peterson makes a contract with Owens for the purchase of a piece
of land for $20,000. Owens does not know of the prospective
corporate formation at the time the contract is signed. Second,
Peterson makes a contract with Babcock to build a small plant
on the property being purchased. Babcock’s contract is conditional on the corporation’s formation. Peterson secures all
necessary subscription agreements and capitalization, and he
files the articles of incorporation. (See Formation and Powers.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
