true or false: If two corporations amalgamate, the newly formed corporation is bound by contracts from the original corporations?

When two corporations amalgamate, they effectively merge to form a new legal entity. The newly formed corporation inherits the rights and obligations of both original corporations, including any contracts that were entered into by them prior to the amalgamation. This principle is rooted in corporate law, which stipulates that the new entity continues the legal existence of the amalgamating corporations, thus absorbing their legal obligations and benefits.

This means that if there were existing contracts binding the original corporations, those contracts remain in effect and are enforceable against the new corporation, ensuring continuity in business operations and commitments. Therefore, in the context of this question, stating that the new corporation is bound by the contracts from the original corporations is accurate.