Contract legally binding ??

[quadsol]

Hi there,

My Sales Director, who is not technically a Director, only in name ... has signed a contract without my knowledge ( I am the sole owner and Director)

Is it legally binding ?

Thanks for any advice.

[INDIZINE]

Yes it is legally bidning. He works for you, so your problem is with him and if he signed something he shouldnt have and its a big issue for you, you take action with him.

Unfortunately best you can do to the other company is explain what's happened and hope they understand your predicament. If they are decent they will let you off. Depends who they are really.

You don't have to be a board director to have any weight in signing things so for some reason your SD seemed to think it was okay, which measn either his parameters have not been made clear or he has simply overshot his responsibilities, whether or not in good faith is for you to decide.

[Antonia @limeone.com]

As he will be your employee your business is vicariously liable for his actions. He has bound your company into a contract, presuming the contract is legal, so any losses to your business will give rise to disciplinary proceedings and a claim for those losses.

You can try and 'break' the contract with the other party to it but allowing an employee to call themselves a director indicates to most external bodies they are dealing with a company director and this is unlikely to go in your favour.

[maxine]

vicariously liable

Thats the word I was looking for!! (sorry, bit slow, long time since exams :))

[Antonia @limeone.com]

I bet it's not as long as it is from mine! I was one of the last to do solicitor's finals rather than the LPC!

[maxine]

I think you do a fab job on here Antonia :)