Provisional Contracts

no, provisional contracts will bind the company only after receiving the certificate of commencement of business.

A third party can enforce specific perdormance suit  against the company  on the folowing grounds;

1). if the agreemnet is prior tp the Incorporation certificate date and  if the said agreemnet has a reference of consideration price and if such amount is adopted in the first board meeting of the company as preincorporation expences and this transcation is reflecteed in the first  annual dircetors report and annual accounts of the company.

2). If the said agreemnet  has reference by stating that, post incorporation of the company, the said transaction will be treated as the transaction of the company.

Gopal