One of my employees entered into a contract
with a company three months ago. LocalOnlineYellow Pages.com
I pay the bills, when the original invoice came through, I thought it was a scam so I threw it away. They sent our company to "collections" for not paying their bill for two months, and sent us a fax to notify us.
I called them and they played a tape recording of one of my employees agreeing to their contract. She does not have the authority to do this.
She thought it was (the real) yellow pages asking for a renewal - I knew the renewal period was due, so I put her on notice to watch for it.
We keep good records. She recalls (and it is documented) saying at the end of the conversation "wait. I better check with the owner" - and he immediately hung up on her. She tried to call him back to cancel it, but there was no answer. Of course, that portion of their recording was not played back to me today.
If any of my employees enter into a stupid contract on behalf of my business
, am I liable for their actions?