contract-law
Signing a contract before existence of Sole Proprietorship
<p>I am currently developing an application for a client and I have set up a contract so that everything runs smooth for both parties. The only problem is, I just recently started the process of creating/registering the Sole Propietorship. The contract I set up mentions my (not yet founded) company and the client. The thing is, I cannot sign the contract, because if I were to sign it now I would be doing that in the name of a company that technically does not exist yet.</p>

<p>My client wants to see the product prototype and we agreed in the contract (which we cannot sign) on an upfront payment, so the contract would prevent anything shady from happening. </p>

<p>Is there any way I can still secure that contract and payment, while not breaking the law ? </p>

<p>I thought about setting up a private contract to bind the client to signing the actual collaboration contract (which would be added as an exhibit to the contract) as soon as my actual company exists, is that legally reasonable ? </p>

<p>Yes, there is no general restraint on signing a contract that incorporates conditions on future events.  Most contracts are of that form &ndash; "For consideration <em>X</em> from Party <em>A</em>, Party <em>B</em> will (or will not) do <em>Y</em>."</p>

<p>You could certainly say, "If I establish entity <em>A</em> in timeframe <em>B</em> then the counterparty agrees to <em>C</em>."</p>

<p>Of course: You should consult a qualified lawyer to draft or review the terms if you want to ensure that the contract will have the desired effect <em>and</em> be enforceable.</p>

<p>You can use a <strong>letter of intent</strong>.</p>

<blockquote>
  <p>LOIs resemble short, written contracts, but are usually in tabular
  form and not binding on the parties in their entirety. Many LOIs,
  however, contain provisions that are binding, such as those governing
  non-disclosure, governing law, exclusivity or covenants to negotiate
  in good faith.</p>
</blockquote>

<p><em>Lifted from <a href="https://en.wikipedia.org/wiki/Letter_of_intent#cite_ref-:0_1-0" rel="nofollow">Wikipedia</a></em></p>
