Legal Question in Business Law in Alabama
Manager signed a contract without my knowledge
My Manager signed a contract with a magazine to run advertising without my knowledge or approval. He does not have this authority. It ran for 5 months before they contacted me for payment. I now owe for 5 months advertising. What can I do?
1 Answer from Attorneys
Re: Manager signed a contract without my knowledge
As a general rule, if an employee or business partner has "apparent authority," that is, appears to all the world that he or she has authority to enter into such a contract, then the contract may be binding on your company. Therefore you would be bound, although you may have an action against your manager.
I don't know how much is at stake, but you may want to offer the company a smaller amount to just rescind the contract and go away. You did get the benefit of advertising for 5 months ...
Good luck.
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