promoters can avoid their liability by inserting for following

The promoters can avoid their liability by inserting for following
provisions in the pre-incorporation contract:
(a) If the company adopts the pre-incorporation contract by entering into a new contract incorporating the terms of pre-incorporation contract. they will be
absolved oftheir liability, and
(b) If the company does not enter into a new contract, either of the parties can set aside the contract.