Legal Question in Business Law in California

Re: Annually renewing contract signed by a past officer

Yes to both.

Joel Selik

www.SelikLaw.com

Re: Annually renewing contract signed by a past officer

Yes, they are still contractually obligated to you/your company. The fact that they may be obligated to the prior company is not relevant to them contracting with your company, UNLESS you knew or had reason to know that they were contractually bound AND that the prior commitment was an EXCLUSIVE agreement.

If the amounts of money involved are high enough you should seriously seek to enforce your rights.

I would be happy to discuss the matter with you.

J. Caleb Donner

LEGAL WARRIORS (R)

805-494-6557

email: [email protected]

web: www.legalwarriors.com

Re: Annually renewing contract signed by a past officer

A contract is a contract. They would potentially be liable on both agreements. Naturally, we would have to review the documents to clearly answer your question. Please contact our office immediately for a free 30 minute consultation. Good luck and thanks for inquiring.

Re: Annually renewing contract signed by a past officer

Understanding that I or any lawyer would first have to read your contract, and both if possible. Since the company is bound by its contracts if the officer who signed it was authorized to bind the company at the time he signed the contract, they could very well be bound to both. Write an email if you think there is more that I should know.

Re: Annually renewing contract signed by a past officer

I can't say whether either contract is binding without seeing the contracts themselves. However, if the original contract was binding in the first place then it doesn't matter that the individual who signed it has left. The contract was made on behalf of the company and not the individual, so it is the company's obligation.

Just imagine what it would be like to try and do business under a system which invalidated contracts whenever the people who signed them changed jobs, retired, was dismissed or died. One of these things is certain to happen to every employee eventually, and chaos would often be the result. Would your business be able to survive if one of your key people quit and all the contracts she signed became worthless? If nothing else, such a system would enable key employees to essentially blackmail their employers by threatening to leave unless they received massive pay raises.

The fact that your client had another contract in place should be their problem and not yours. Barring something unusual about your case, I see no reason why their prior contract should affect your rights.

Of course, the language of your contract is critical to this analysis. It may allow the other company to back out at this stage even for reasons beyond your control. As I said at the outset, I really can't offer a definitive answer based on the limited information you have provided.

Re: Annually renewing contract signed by a past officer

It appears they may be bound to honor both contracts. If person who executed original contract and yours were authorized to act on behalf of the company, contractual agreement likely valid. Need to see both to provide definite answer. 800-685-6950

Re: Annually renewing contract signed by a past officer

It appears that they would be potentially liable on both contracts. We would have to review the documents to properly advise you.

Please e-mail me with contact information or call me for a free initial telephone and/or office consultation. (818) 991-6664.

Good luck and thank you for your inquiry.