The correct answer is: B. Both 1 and 2
A provisional contract is a contract that is made before a company is incorporated. It is not legally binding until the company is incorporated. A pre-incorporation contract is a contract that is made after a company is incorporated but before it is granted a certificate of commencement of business. It is not legally binding until the company is granted a certificate of commencement of business.
A preliminary contract is a contract that is made before the parties have agreed on all the terms of the final contract. It is not legally binding until the parties have agreed on all the terms of the final contract.
In the case of contracts made after incorporation but before the grant of certificate of commencement of business, the company is not legally bound by the contract until it is granted a certificate of commencement of business. However, the other party to the contract may be able to enforce the contract against the company if the company has received any benefits under the contract.
For example, if a company contracts to buy goods from
a supplier after incorporation but before it is granted a certificate of commencement of business, the supplier may be able to enforce the contract against the company if the company has received the goods.