Zaheer concludes a contract with Jonty Rhodes for the lease of an office building for his new company. His wife has proposed that the company’s name should be Khan Management and Investments (Pty) Ltd.

Question

Advise Zaheer on the validity of the contract concluded on behalf of Khan Management and Investments (Pty) Ltd before its incorporation.

Answer 1

I am not a lawyer, but I can provide some general information. In most jurisdictions, a contract cannot be concluded on behalf of a company that has not yet been incorporated. The reason for this is that a company has separate legal personality and can only enter into contracts once it has been properly registered.

Therefore, if Zaheer signed the contract on behalf of Khan Management and Investments (Pty) Ltd before the company was incorporated, the contract may be considered invalid and unenforceable. This means that neither party would be legally obligated to fulfill their obligations under the contract.

To ensure the validity of the contract, it is generally recommended to wait until the company is properly incorporated and has obtained the necessary legal documentation, such as a Certificate of Incorporation or Registration, before entering into any contractual agreements.

It is essential to consult a legal professional who specializes in contract law and local jurisdiction to get accurate and specific advice regarding this matter.