Legal Question in Civil Rights Law in California

I have two questions:

Senerio: A LLC business goes out of business,however, does not file bankrupcy.

They have an outstanding balance on a contract they signed with another company for product & services.

Question:

1) If an employee who is with the company signs the contract on behalf of their company can they be held liable?

2) Can the person who signed the contract, however, is NOT the owner of the business be sent to small claims court and the outstanding balance be collected from the party who signed the contract?


Asked on 3/29/13, 11:16 am

1 Answer from Attorneys
Charles Perry Law Offices of Charles R. Perry

If the contract is clear that the employee is signing on behalf of the LLC, the employee is not liable on the contract. This is true even if the person signing the contract is the owner of the LLC.

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Answered on 3/29/13, 11:28 am


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