Who is liable for contracts made on behalf of a company before its registration?

In the context of company law, the promoter is liable for contracts made on behalf of a company before its registration. This is because, until the company is formally registered, it does not have legal status and cannot enter into contracts in its own right. The promoter acts as an intermediary and takes on the responsibility for such contracts. This liability includes ensuring that any obligations arising from those contracts are fulfilled, as the company itself cannot be held accountable until it is officially established.

The company becomes liable for its contracts only after it is registered. Similarly, shareholders are not personally liable for pre-registration contracts and typically do not assume any obligations until they become associated with a registered entity. The registrar of companies also has no legal responsibility for contracts made before a company’s formation, as their role is primarily administrative regarding the registration process. Therefore, the promoter holds that liability during the period prior to the company's legal recognition.