Problem
Jerry Seinfeld is planning to register a new company and transfer his existing business into that company. Seinfeld plans to call his company ABC Pty Ltd, and he is currently negotiating with a lawyer on the format and constitution of this company. Seinfeld rents premises in preparation for the registration of the company and he orders stationery on which the new company's name is printed. However, due to domestic circumstances, Seinfeld's estranged wife has placed a claim over his business, so the transfer to a company cannot take place and Seinfeld abandons the plan to register a new company. Is Seinfeld responsible for the costs of the rented premises, the stationery, and the lawyer? Explain.