Investor Presentaiton
WARRANTIES IMPLIED IN PRE-
INCORPORATION CONTRACTS – SECTION 24
Unless a contrary intention is expressed in the contract, there shall be an implied warranty by
the person who purports to enter into such contract in the name of or on behalf of the company:
a) that the company will be incorporated within such period as may be specified in the
contract, or if no period is specified, within a reasonable time after the making of the
contract; and
b) that the company will ratify the contract within such period as may be specified in the
contract or if no period is specified, within a reasonable time after the incorporation of
such company.
The amount of damages recoverable in an action for breach of an implied warranty as aforesaid,
shall be the same as the amount of damages that may be recoverable in an action against the
company for damages for breach by the company of the unperformed obligations under the
contract, if the contract had been ratified by the company.
• If a company, after incorporation, enters into a contract in the same terms as or in substitution
for, a pre-incorporation contract, which is not ratified, the liability of the persons who entered
into such pre-incorporation contract shall be discharged.View entire presentation