In the case of Phonogram v Lane [1982], before incorporating a - TopicsExpress

In the case of Phonogram v Lane [1982], before incorporating a company called Fragile Management Ltd.L contracted with the Plaintiff for a loan of 12,000 to finance a pop group called Cheap, Mean & Nasty. The Plaintiff wrote to L in which reference was made to him undertaking to pay. He neverthelss was required to sign and return a copy for and on behalf of Fragile Management Ltd.The Company was never performed and the group never performed. The Court held that the defendant was personally liable to repay the money advanced.

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