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Typically, a corporation is formed as a result of the efforts of one or more persons called promoters. These individuals bring together interested persons and take the preliminary steps to form a corporation. Regardless of the promoters’ efforts, however, the resulting corporation is not liable on any contract made on its behalf. The promoters cannot bind an organization that is still to be created. Usually, though, once it comes into being, the corporation adopts the contracts and is bound by them.
A corporation is formed by the government.
The promoters can bind an organization that is still to be created.
The corporation is liable on some contract made on its behalf.
The promoters are individuals who bring together interested persons and take the steps to form a corporation.