Question

Marvin and Maria start selling handmade jewelry to distributors nationwide and intend to form an LLC. Marvin and Maria enter into four contracts with distributors while the LLC is in the process of being formed, but before the LLC is formally in existence. Once Marvin and Maria form the LLC:

a. once the LLC is formed and adopts the contracts, it can then enforce the contract terms.
b. the contracts are unenforceable by the LLC, only Marvin and Maria personally.
c. the contracts are enforceable if this were a corporation, but not for an LLC.
d. the contracts are unenforceable by any party.

Answer 1

The correct answer is a. once the LLC is formed and adopts the contracts, it can then enforce the contract terms.

Step-by-step explanation:

The contracts must be handled legally, since both have a company in which all types of commercial operations must be registered. It should also take into account the responsibilities that you have as a legal entity, when reporting all your information, presenting and paying taxes, among others.