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Q: If a promoter enters into a contract with third part on behalf of proposed corporation who is bound?
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Which of these involves a representative who discusses proposed changes in the terms of a labor contract on behalf of employers and employees?

collective bargaining


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Business persons sometimes enter into contracts on behalf of a business organization that is not yet formed. For example, a person forming a corporation may enter into a contracts during the process of incorporation but before the corporation becomes a legeal entity. Once the corporation is formed, it can then enforce the contract terms by means of novation.


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