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| Stearn was one of the promoters of Lehman Company which was not yet incorporated. On January 2, Stearn made a contract with Stanley Corporation to have Stanley provide 6,000 electrical parts for Lehman Company at fixed prices beginning on July 15 and lasting for 5 more months. Stanley was not told and was unaware that Lehman Company had not been formed. On April 10, Lehman Company was formed under the relevant statutes. On July 15, Stanley delivered 1,000 of the 6,000 parts as agreed and Lehman accepted them. On August 15, when Stanley tried to deliver another batch, Lehman refused, saying that the prices of other suppliers had dropped. Which of the following is correct? A. Stanley may not enforce any of the contract with Lehman Company. B. Lehman cannot be liable on this contract for any of the 6,000 parts because Lehman never orally or in writing adopted the contract. C. Stearn is personally liable on this contract. D. Lehman is in breach of this contract since its agent, Stearn, made this contract with Stanley. |