Difference Between Pre Incorporation Contracts Provisional Contracts
Contracts made before the incorporation of company is called pre-incorporation contracts. Contracts made after incorporation, but before the company becomes entitled to commence business are called provisional contracts. Provisional contracts are no more valid as provisions relating to commencement of business have been omitted by Companies (Amendment) Act, 2015. The contracts after the incorporation should be within the purview of Memorandum of Association. Pre Incorporation Contracts Preliminary contracts or Pre Incorporation Contracts are contracts purported to be made on behalf of a company before its incorporation....