On an appeal from the dismissal of a rule 21.01(3) motion, the court considered whether a corporation incorporated after the vendor's repudiation of a real estate agreement could adopt a pre-incorporation contract under s. 21 of the Business Corporations Act and sue for damages.
The court held that s. 21 replaces the common law and must be interpreted as a self-contained statutory scheme.
A contract falling within s. 21(4) remains a nascent statutory contract before adoption, and after incorporation the corporation's adoption operates retroactively to the date of the agreement.
Accepted repudiation terminated only future performance, not accrued obligations, so there remained a contract capable of adoption.
The corporation adopted the contract by commencing the action and therefore had status to enforce it.