Legal Question in Business Law in Florida
A non-authorized employee signed a 5 year lease agreement for my company. What ramifications to the company or the employee can I expect if the lease is terminated
1 Answer from Attorneys
It depends on the circumstances. The employee may have had implied authority or apparent authority, in which case, your company may be bound by the lease. Actual authority is not necessarily required. Additionally, if the employee did not have any authority (actual, implied, apparent), but your company later ratifies the lease, which also may be implied by your company complying with the lease terms (e.g. occupying the leased premises, paying rent), the company may then be bound by the terms of the lease. If the lease is valid, then your company can expect all ramifications for breaking the lease. The employee should not be liable if s/he was negligent or acted outside of the scope of his/her authority, but fraud and gross negligence are another matter.
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