Which of the following is true for a corporation's liability on the promoters' contracts if the corporation is never formed?

A) The corporation assumes liability of the promoters' contract automatically upon its creation.
B) The promoter's liabilities are transferred to the board of directors of the corporation upon its formation.
C) The promoter, the corporation, and the third-party enter into a novation whereby liability is solely transferred to the corporation.
D) The promoters have joint personal liability on the contract unless the third party specifically exempts them from such liability.

D