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Chris T., JD
Chris T., JD, Attorney
Category: Legal
Satisfied Customers: 4779
Experience:  Experienced in both state and federal court.
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I a 60 month contract signed by someone other than the owner

Customer Question

I a 60 month contract signed by someone other than the owner of the business valid?
Submitted: 1 year ago.
Category: Legal
Expert:  Chris T., JD replied 1 year ago.

Hello. I'll be happy to assist you.

The answer to that question depends. Essentially, a company can have more than one person who may "bind the company" based on their position, title, etc. For example, the vice president of a company can (and oftentimes does) bind a company, so his signature, would be valid on a contract. On the other hand, a janitor or bookkeeper could not.

Customer: replied 1 year ago.
Only one person is the owner and a family member who doesn't know about contracts signed. Should I let them take me to court of should we let them know the owner had no clue?
Customer: replied 1 year ago.
can that family member that signed get in trouble for signing?
Expert:  Chris T., JD replied 1 year ago.

Do they have a title in the company?

Customer: replied 1 year ago.
no. she was just looking to continue the towel service with the same company that the former owner used. She was coached on what to write as her title. She was told to put "co-owner" under her signature.
Customer: replied 1 year ago.
the sales person had no time to wait for the owner.
Expert:  Chris T., JD replied 1 year ago.

If there was some kind of fraud in the execution of the contract, like her putting down a fake title at the direction of the other company, that is not a valid contract.

Expert:  Chris T., JD replied 1 year ago.

If she had done that on her own, the other company may have had an argument that she had the apparent authority to bind the company, making the contract valid, but if they knew she was not the co-owner and had her write it down anyway, they can't argue that they belived she had the authority to sign.

Expert:  Chris T., JD replied 1 year ago.

The question for you at this point becomes whether they are going to dig their heels in and litigate the issue, and if so, whether it is worth it to you in terms of cost and headache to fight it.

Customer: replied 1 year ago.
They tried suing us when we tried to fire them. that is how we discovered someone other than the owner signed.
Customer: replied 1 year ago.
if they take us to court can they actually win?
Expert:  Chris T., JD replied 1 year ago.

Based on what you've said, it sounds like you have a very good shot at winning. Of course, these things are very fact driven, so the devil is in the details. Still, it sounds like you are in pretty good shape if they told her to lie on the contract.

Expert:  Chris T., JD replied 1 year ago.

I hope that anwers your question. If not, feel free to ask follow up questions. If so, please remember to "Rate" my answer before you go. Good luck.

Expert:  Chris T., JD replied 1 year ago.

Is there something else I can do for you?

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