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. Promoter's Liability: The promoter is personally liable for a pre-incorporation contract. Corporation's Liability: The corporation is not bound by a pre-incorporation contract until it accepts it. Liability for pre-incorporation contracts.