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11 September, 02:42

Following the formation of a corporation, which of the following terms best describes the process by which the promoter is released from, and the corporation is made liable for, preincorporation contractual obligations?

A. Assignment.

B. Novation.

C. Delegation.

D. Accord and satisfaction.

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Answers (1)
  1. 11 September, 03:01
    0
    The correct option is option B

    Novation.

    Explanation:

    Novation is the substitution of a new contract in place of an old one. It is the act of replacing an obligation to perform with another obligation.
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