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Querist : Anonymous

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Querist : Anonymous (Querist)
29 October 2011 pls sir tell me what is Provisional Contract
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CMA. CS. Sanjay Gupta

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CMA. CS. Sanjay Gupta (Expert)
29 October 2011 Section 149(4) of the Companies Act provides that any contract made by a company (which is already registered) before the date at which it is entitled to commence business shall be provisional only, and shall not be binding on that company until that date, and on that date it shall become binding.

Contracts entered into prior to the incorporation and before the company is entitled to commence its business are provisional contracts.
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