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Question
Jones & Co. is a business concern in the process of being set up. Its promoters have entered into preincorporation contracts. After the corporation comes into existence, the promoters can be released from liability through:
A. an agreement with the corporation wherein the corporation agrees that it will be substituted for the promoter.
B. an agreement with the third party before adoption of the preincorporation agreement.
C. an agreement with the corporation and third party wherein all three agree that the corporation will be substituted for the promoter.
D. the preincorporation contract with the third party.
Answer
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