Privatstiftung
Foundation declaration

Pre-foundation orders goods: liability before registration

Persons who order goods in the name of a private foundation before registration may be jointly and severally liable under section 7(2) PSG.

BRANDAUER Rechtsanwälte
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BRANDAUER Rechtsanwälte

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Your matter is handled by a team combining corporate law, asset succession, real estate law and dispute resolution. We review the foundation declaration, board resolutions, information rights and liability issues and set out clear next steps. Mag. Bernhard Brandauer is responsible for the legal advice, supported by further specialised lawyers of the firm where the matter requires it.

18 September 2026, Mag. Bernhard Brandauer, Rechtsanwalt

A private foundation comes into existence only upon registration in the Companies Register. If goods are ordered in the name of the future private foundation before registration, the persons acting are jointly and severally liable for that act.

The practical assessment therefore focuses on the exact timing, the wording of the order and the stated contracting party. Calling the entity a pre-foundation does not by itself resolve the personal liability issue.

This article explains section 7 PSG using a goods order and sets out which records should be organised before payment, delivery and further contractual steps.

When the private foundation becomes a legal entity

Section 7(1) PSG separates formation from coming into existence. The foundation declaration establishes the private foundation. Legal personality begins only with registration in the Companies Register. The period between the declaration and registration must therefore be kept distinct from the life of the registered legal entity.

For a goods order, that point in time must be established precisely. The register position and the date of the order are central. A signed foundation deed does not replace registration.

What an order before registration means

Section 7(2) PSG covers acts performed in the name of the private foundation before registration in the Companies Register. The statutory consequence is joint and several liability of the persons acting. In a purchase, this concerns the statement made to the supplier when the future private foundation is named as contracting party.

The issue therefore does not depend only on who later joins the foundation board. It attaches to the specific act before registration and to the way the act was presented in the name of the private foundation. Later registration does not change the original timing of the act.

How to identify action in the foundation’s name

Review the order, offer, order confirmation and signature. These records should show who ordered, for whom the order was placed and when the statement was made. Emails, ordering portals and delivery arrangements may also clarify the sequence.

The internal label pre-foundation does not answer these questions. Nor does later registration settle the position if the order was already submitted. The contractual documents and the register chronology must be read together.

What requires separate review after registration

Registration creates the private foundation as a legal entity. Section 7(2) PSG addresses liability for acts before that point. Whether an order should be continued, confirmed, amended or ended after registration must be assessed separately under the specific contract and the statements made by those involved.

Before payment or acceptance of further deliveries, review the order, goods, price, due date and current authority to act. A new order after registration is a separate event from the earlier order.

Records that support the liability review

The foundation deed, the register extract and the order belong in one chronology for the initial review. Also secure the offer, order confirmation, invoice, delivery record, payment records and communications with the supplier.

The file should answer three questions: When was the order placed, who acted and in whose name was the statement made? If one question remains open, record it expressly before further statements are made.

How to assess several persons acting together

If several persons acted in the name of the private foundation before registration, section 7(2) PSG refers to joint and several liability. Internal task allocation or the expectation that the foundation will later take over does not replace a review of each signature and statement.

With several participants, assess the order, authority, communications and delivery together. Only then can the file show which persons contributed to which statement and which issues still need clarification with the supplier.

Review matrix

Separate timing, appearance and liability

A reliable assessment connects the register position with the contractual records.

Section 7 PSG remains decisive for the period before registration.
Review field Key question Record
Timing Was the order placed before registration? Register extract and order date
Appearance Was the order made in the foundation’s name? Order, offer and signature
Participants Which persons made statements? Authority, email and order confirmation
Further steps What should happen after registration? Delivery, invoice and later statements
Important: An order before registration can trigger personal liability for the persons acting. The timing and the appearance as representative of the future private foundation should therefore be secured.
Process

Review the goods order in a structured way

The sequence keeps formation, contract and later steps separate.

  1. 01
    Step 1

    Secure the registration date

    Compare the register position with the order date.

    Record the register extract, registration date and order date in one chronology.

  2. 02
    Step 2

    Read the order

    Identify the contracting party, goods and signatories.

    Review the order, offer and confirmation for the contracting party, goods and signatures.

  3. 03
    Step 3

    Identify the persons acting

    Assign statements and authority to each person.

    Assign emails, authority documents and ordering portal entries to the persons involved.

  4. 04
    Step 4

    Clarify further performance

    Review delivery, invoice and payment after registration.

    Assess open deliveries, invoices and payments separately from the original order.

  5. 05
    Step 5

    Complete the file

    Document open questions and further statements.

    Secure the chronology, open points and basis for any further statements in a traceable record.

Initial assessment

Pre-foundation orders goods: liability before registration

This path does not replace a review of the specific contract file.

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01 Question 1

Was the goods order placed before registration in the Companies Register?

All paths at a glance

Overview of all answers.

01

Liability under section 7(2) PSG should be assessed.

Secure the order date, contracting party, persons acting and registration in one chronology.

02

The contractual records require closer review.

Review the order, offer, confirmation and communications for the contracting party and signatures.

03

The order was placed after registration.

Review current authority and contractual performance using the relevant records.

Frequently asked questions

Pre-foundation orders goods: liability before registration

Does the private foundation exist once the foundation deed is signed? +
No. Section 7(1) PSG separates formation from coming into existence. The private foundation comes into existence upon registration in the Companies Register.
Who is liable for an order before registration? +
Under section 7(2) PSG, the persons acting in the name of the private foundation before registration are jointly and severally liable.
Does the label pre-foundation prevent personal liability? +
The label alone does not resolve the issue. The decisive points are timing, action in the foundation’s name and the specific act.
Which records should be secured? +
The key records are the register extract, foundation deed, order, offer, order confirmation, communications, invoice and delivery record.
Topics
Private foundationPre-foundationActing liabilityGoods orderCompanies RegisterPSG

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