This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
We, the. undersigned, in consideration of the mutual promises of one another hereinafter contained, do severally subscribe for and agree to take and pay for the number of shares of the capital stock of the X. Y. Company, which are hereinafter set opposite our respective names, as soon as said corporation shall be incorporated in due form in accordance with the laws of the State of
---------; and we agree to pay therefor the sum of --------- dollars per share, the
6ame being the par value of said stock; and we agree respectively to pay said amounts within --------- days after said corporation has been incorporated as aforesaid, said payments to be made to [insert name of party who is to receive payments] at [insert place of payment].
Names of subscribers Number of shares of stock
A. B., ---------.
C. D., ---------.
Under some forms the subscription Is made payable to some designated official of the corporation. This form may be used In a Jurisdiction In which a corporation may come into existence before a certain portion of its authorized capital stock is subscribed and paid in.
In Jurisdictions in which the corporation can not come into existence until a certain portion of its authorized capital stock is subscribed and paid in, the subscription contract ought to indicate the person or persons to whom payments are to be made; although this may not be necessary if the statute has designated certain persons, such as the incorporators to whom such payments are to be made. Under such statutes, payment must come before, not after, the creation of the corporation.
See references under Sec. 3764.
For form cf assignment of stock, see Sec. 3791 and 3792.
For contracts unfair to minority stockholders, see Sec. 885.
For contracts for control, etc., of corporations, see Sec. 883 et seq.
For specific performance of contract to sell corporate stock, see Sec. 3333 et seq.