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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1496 |
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?The High Court rejected the argument that kelner v Baxter created a rule of law that whenever a person contracted for an unformed company, they must be assumed to have attended personal liability' . The outcome shows us that although promoters were sometimes held personally liable for pre-registered contracts (kelner presumption) that there are instances in which promoters were found not to have intended to undertake personal liability on a contract for an unregistered company...
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An example of this would be the promoter believing that he was acting for a company that was already registered.
The common law view also created problems for promoters. If a promoter used his personal money or performed services on an unregistered company's behalf, the promoter can not require the company when it was later registered to reimburse the expenses...
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