The new Companies Act of 2008 is far simpler in regard to pre-incorporation contracts When the new Companies Act 2008 was being drafted, the opportunity was taken to simplify the statutory formalities for a valid pre-incorporation contract. Section 21 of the new Act thus requires only that the contract in question be in writing and entered into.
However, as is discussed below, a pre-formation contract (in California, at least) is treated like a pre-incorporation contract. See 02 Development, LLC v. 607 South Park, LLC. Pre-incorporation Contract Principles. The founders of a business may enter into contracts for that business before they complete the incorporation process. In such a.