ACCA · Question 13 · Corporate and Business Law
Marcus is acting as a promoter for a new tech startup, 'CyberShield Ltd', which has not yet been incorporated. He signs a lease agreement for office space, signing the document 'Marcus, on behalf of CyberShield Ltd'. Once the company is incorporated, it moves into the office. Who is legally liable on the lease agreement under the Companies Act 2006?
Answer options:
CyberShield Ltd is liable, because they moved into the office and implicitly ratified the contract.
Marcus is personally liable, as the company did not exist at the time the contract was made.
Both Marcus and CyberShield Ltd are jointly and severally liable.
The contract is void and neither party is liable.
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