Legal Question in Consumer Law in New York
Verbal Signatures by Unauthorized Parties
We had an unauthorized party at our establishment enter into a contract with a sales representative who cold called us! As soon as we realized what happened we have made every effort to contact the company and cancel the contract. They refuse to cancel the contract stating that his fraud is our problem and are currently dodging all our phone calls. Basically, anyone could have answered the phone and they would have accepted his decision to enroll in the program. Is this a valid contract? We are now in collections!
1 Answer from Attorneys
Re: Verbal Signatures by Unauthorized Parties
The issue involves the law of agency, and actual versus implied authority. I have experience in the field, and actually was involved in a complex surety bond case with a similar issue.
Based on the details, the contract may be unenfortceable.
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