John is the promoter of Wheelies Corporation, an automotive wheel manufacturing business. To escape personal liability on preincorporation contracts, John planned to make only nonbinding preincorporation contracts. He made one such contract in March 2017 with his friend David for supplying Wheelies with auto parts. After getting payment for the contract, David refused to supply the parts. Wheelies was incorporated in May 2017 and it adopted the preincorporation contracts made by John. Is David liable?

Answer rating: 100% (QA)

No David is not liable because the contract was with John ... View the full answer