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Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3540
Experience:  LLB, LPC, DELF
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I'm a director of a company and an employee signed a car

Customer Question

Hi, I'm a director of a company and an employee signed a car lease order form which stated a 5% cancellation price of list price of car. I have since signed the order form but wasn't aware of the 5% cancellation can the lease company enforce this?
Submitted: 1 year ago.
Category: UK Law
Expert:  Alex J. replied 1 year ago.
Hi
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Did the order form say it was subject to contract? Was the lease signed as a deed?
Kind regards
AJ
Customer: replied 1 year ago.

The wording on the order form was as follows;

Quotation Acceptance / Vehicle Order
To accept this quotation and order the above vehicle(s), please complete this section and fax to 01565 363 051
I/we confirm that I/we wish to proceed with this order.
By signing this order I/we understand that should I/we wish to cancel, a cancellation fee equivalent to 5% of the list price of
the vehicle will become payable by me/us (subject to credit acceptance). I/we further agree to indemnify Eurocar Group
Limited fully against any claim by the vehicle supplier or any adverse tax liability as a result of the cancellation of this order.
Signature(s): ............................................................................ Date: ................................................................
Name(s): .................................................................... Title(s): ..............................................................................
Data Protection: It is important to us to keep your information confidential. In considering your application we may use a
credit scoring system and search your individual records as a company director at credit reference agencies to help us or
our lenders decide whether to give you credit. The credit reference agencies will keep a record of the search and this will
be seen by other organisations that make searches. If false or inaccurate information is provided and fraud is identified,
details will be passed to fraud prevention and law enforcement agencies.

However it was an employee that signed it who was not authorised to do so. I would never have signed this with a 5% cancellation fee.

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Did the employee sign this in his personal name or was it for and on behalf of the company?
Kind regards
AJ
Customer: replied 1 year ago.
Signed it in his own name.
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you
Technically if the employee signed it in his own name with out authority and not "For and on Behalf of the company" and the company is not named on the order form, this is the employees liability.
Furthermore if the leasing company knew full well that you previously signed all documents for the company, it is totally unreasonable for them to try and bind the company under a signature that they knew was not capable of binding the company.
Were the leasing company aware that you were the director that should have been signing the documents?
Kind regards
AJ