What is the difference between Preliminary Contract and Provisional Contract?


-4
 

Basis

Preliminary Contract

Provisional Contract

1.

Meaning

Preliminary contracts are the contracts, which are made before the formation of the company The contracts which are entered by a company after incorporation but before it is entitled to commence business are provisional Contracts
2.

Enforcement of contract

Neither the company can sue nor can it be sued to enforce the preliminary contracts. Can be enforced only on receiving certificate of Commencement of Business.
3

Contracts related to

Preliminary contracts may relate to property which the promoters desire to purchase for the company or they may be made with the persons whose know-how is vital to the success of company. It is not so with the provisional contracts
4

Applicable for

Both private and public company Only public company

Like it? Share with your friends!

-4
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

10 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format