Legal Question in Business Law in Arkansas
An unauthorized person accepted a product advertising offer for our company for $1000. A total of $610 of it was paid before it was caught in our office. There was no product produced and no signed contract. Should the company be required to reimburse us the $610.00?
1 Answer from Attorneys
It depends on the facts surrounding the situation. If the employee appeared to have the authority to enter the deal to the advertising company, they have an argument. That being said, if they didn't fufill their end of the deal, it doesn't matter if the person was authorized. It is just a breach of contract claim. Once again, how to remedy the siutaion will depend on the very specific facts of how the deal came about and what the deal was. When it was breached, how it was breached, etc.
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