Legal Question in Business Law in Utah
One of my employees signed a contract for my company with a uniform supplier. I was unaware of the contract, but since we have done business with this company for many years, my employee thought it would be okay to sign. I would like to end service with the uniform company, but they said I am under contract. Is the contract binding even though the signer was not an owner or manager, just an hourly employee?
Asked on 9/21/10, 3:36 pm
1 Answer from Attorneys
Alvin Lundgren
Alvin R. Lundgren, L.C.
Not unless an authorized person from your company ratified the contract, ie. by making payment or some other statement that would lead the vendor to believe the contract was valid. This includes a failure to timely repudiate the contract.
Answered on 9/26/10, 8:58 pm
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