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I realize this is not a forum to get legal advice, but I am sure some one has been through this before. I had an employee sign a contract with a vendor with out my knowledge. The person then signed for the first shipment. This employee is not in a leadership roll and is in a lower level position. The contract is a multi year commitment that requires minimum orders weekly.

I contacted the vendor in question about this, and they said it was fine to op out of the contract with a penalty (over $1000 per month for the remainder of the contract).

Has any one run into this before? What did you do?

I could hire a lawyer, but I just don't get how some one can sign a contract for your company who has now authority to do so and have it be a valid contract.

jhack's picture

Sorry Brandon, that sounds like a real legal pickle. You need legal advice. If you've accepted shipment or anything like that, then you're probably in a very weak position.

In the future, you need to make clear to your staff and to your vendors and prospects who may and may not sign contracts.

One last note: more than one company I've worked at would have fired the employee on the spot, and notified the vendor of an impropriety. Immediately, lawyers would have positioned to negate the contract without penalties.

John