Question: Question 5 N/B - This question is strictly based on South African business transaction law. X acts on behalf of ABC Hygiene Company (ABC). ABC

Question 5

N/B - This question is strictly based on South African business transaction law.

X acts on behalf of ABC Hygiene Company (ABC). ABC has not yet been formed and incorporated as a company. X needs to rent laboratory facilities on behalf of the company (before the company's formation and incorporation) so that the company can prepare for trading after its formation and incorporation. ABC's in-house legal counsel is of the opinion that X cannot enter into a contract (the rent agreement) on behalf of ABC at this stage because ABC has not been formed and incorporated as a company. Advise X and ABC.

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