The promoter is not released from liability when the corporation accepts the contract The promoter may be released from the contract if there is a novation The promoter is not bound if the other party knew the corp was not formed and agreed to look solely to the corporation for performance Corporation's Liability: The corporation is not bound by a pre-incorporation contract until it accepts it. Corporation's Liability: The corporation is not bound by a pre-incorporation contract until it accepts it. A pre-incorporation contract is a contracts that is entered into before the corporation is formed Liability for pre-incorporation contracts. Pre-Incorporation Contracts