Tunde and Christine are a married couple and partners in a business that sells books and stationery. The business proves to be extremely successful, and they open up a number of branches. In order to limit their liability, they instruct their solicitor to incorporate the business, calling the new company Tunchris Plc. Around the same time, EPP is about to release a new type of stationery. Tunde and Christine are keen to acquire as many of these stationery as possible. Tunde hears of a potential source (Readwide) and is offered fifty boxes of stationery. Eager to purchase the stationery, Tunde does not wait until the company is incorporated and enters into a contract with Readwide ‘for and on behalf of Tunchris Plc. Christine is also offered a number of stationery and, prior to the company being incorporated, she enters into a contract with Plabo Ltd for forty boxes of stationery. She signs the contract ‘Tunchris pp. Christine (a director).’ The certificate of incorporation is issued and, at the first board meeting of Tunchris Plc, Tunde and Christine ratify both contracts. Tunde and Christine both have large stationery stock. Tunde sells to Tunchris Plc a number of stationery that he acquired prior to engaging in the company’s formation. Christine sells to the company a number of stationery that she acquired whilst the company was being formed. Shortly thereafter, Readwide refuse to sell Tunde the fifty boxes promised, as it believes that it can sell all the stationery to the public for a higher price. Christine is concerned that Plabo Ltd will also refuse to sell the forty boxes promised. A shareholder of Tunchris Plc, Wisdom, discovers the above and seeks your advice regarding whether or not any breaches of the law have occurred. Would your answer differ if Tunchris Plc Ltd had been an off the shelf company purchased by Tunde and Christine?

This question has more than one correct answer and they all must be selected. Select all the statements that are not true concerning the basic philosophy of JIT system.