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New Jersey Pre Incorporation Agreement, Shareholders Agreement and Confidentiality Agreement New Jersey Form

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New Jersey Pre Incorporation Agreement, Shareholders Agreement and Confidentiality Agreement New Jersey Form

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hi i'm andrew easler managing attorney at eastler law today we're going over your most pressing legal questions today's legal question is what are pre-incorporation agreements pre-incorporation agreements are contracts that are intended to bind an organization before the entity itself is formed however there are significant risks to pre-incorporation agreements including that number one the promoter the person entering into the contract on behalf of the prospective entity is personally liable for the obligations incurred on behalf of the entity until and unless the entity once formed acknowledges the contract and until and unless the other contracting party and the entity release the promoter from liability and two the entity itself may never be formed it may decide later not to acknowledge the debt and the contracting party may decide not to release the promoter from liability it is critically important to discuss your options with an attorney before executing

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