Problem:
Will is a keen student of business and wants to start a new company specializing in re-cycling. He is unsure of the legal status of a pre-incorporation contract but prior to registering his new company Wills Re-cycling Pty Ltd he signs a contract to purchase a one hectare piece of land near the new freeway being built in the eastern suburbs of Melbourne where he proposes to run his new business.
Soon after signing the contract Wills Re-cycling Pty Ltd is registered. Unfortunately for Will the company cannot obtain finance to complete the purchase of the land. Advise Will of his possible liability in this transaction at common land and under the Corporations Act 2001.
Additional Information Regarding Question:
This question belongs to Law as well as it explains about a new company being established. The company enters in contract to purchase a piece of land after the incorporation. After company incorporation, the company fails to obtain finance to purchase the land. The options open to the company have been stated in the solution.
Total Word Limit: 67 Words