Article 16 - Transaction entered into prior to corporate existence

(1) Where a transaction purports to be entered into by an LLC, or by a person as agent for an LLC, at a time when the LLC has not been formed, then unless otherwise agreed by the parties to the transaction, the transaction has effect as one entered into by the person purporting to act for the LLC or as agent for it, and he is personally bound by the transaction and entitled to its benefits.
(2) An LLC may, within such period as may be specified in the terms of the transaction or if no period is specified, within a reasonable time after it is formed, by act or conduct signifying its intention to be bound thereby, adopt any such transaction and it shall from that time be bound by it and entitled to its benefit and the person who entered into such transaction shall cease to be so bound and entitled.