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Legal standing

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  • 24-05-2018 9:25am
    #1
    Users Awaiting Email Confirmation Posts: 104 ✭✭


    If a contract was signed for advertising services by an employee who no longer works in our company, is it a legally binding contract? The owner never authorised the signing and they are now threatening legal action.


Comments

  • Registered Users Posts: 4,632 ✭✭✭NoQuarter


    Was the contract signed on behalf of the company?


  • Registered Users Posts: 8,479 ✭✭✭Gloomtastic!


    We’ve had this before and there is a proper name for it (Pedro knows!), but if the person said they were responsible for signing off on advertising and they then signed the contract, the advertiser can take that at face value. The contract is valid.


  • Users Awaiting Email Confirmation Posts: 104 ✭✭dazzymc


    NoQuarter wrote: »
    Was the contract signed on behalf of the company?
    It was signed by the old manager but he never got authorisation to sign it. It was for an advertising company in England.


  • Registered Users Posts: 8,479 ✭✭✭Gloomtastic!


    dazzymc wrote: »
    It was signed by the old manager but he never got authorisation to sign it. It was for an advertising company in England.

    Has the ad been published? Who supplied the copy for the ad?


  • Users Awaiting Email Confirmation Posts: 104 ✭✭dazzymc


    Has the ad been published? Who supplied the copy for the ad?
    It was one of those digital advertisements on screen displays. The owner didn't even know it was being shown anywhere. They say it was displayed on screen in a doctors waiting area. As far as I can tell, they did all the artwork but they just started sending us emails that they are going to begin legal proceedings against the owner.


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  • Registered Users Posts: 78,421 ✭✭✭✭Victor


    dazzymc wrote: »
    It was signed by the old manager
    Surely managers are entitled to sign such things?


  • Users Awaiting Email Confirmation Posts: 104 ✭✭dazzymc


    Victor wrote: »
    Surely managers are entitled to sign such things?
    He didn't have authorisation!


  • Registered Users Posts: 8,479 ✭✭✭Gloomtastic!


    dazzymc wrote: »
    He didn't have authorisation!

    But as far as they are concerned, he did.

    However, it sounds a bit suspicious to me. Digital ads in doctors waiting rooms - I’ve heard of a scam like that before. How can they prove they appeared? Ask for proof of publication.

    Google the company, the directors. See if they have a bad rep.


  • Registered Users Posts: 1,717 ✭✭✭Raging_Ninja


    dazzymc wrote: »
    He didn't have authorisation!

    Did he need to have authorisation, and if so can you prove that he didn't have authorisation?

    Anyways, if you are actually interested in a genuine answer, talk to your solicitor.

    Did they show you a copy of the signed contract?


  • Closed Accounts Posts: 872 ✭✭✭martyoo


    However, it sounds a bit suspicious to me. Digital ads in doctors waiting rooms - I’ve heard of a scam like that before. How can they prove they appeared? Ask for proof of publication.

    This is ringing a bell with me too. A very pushy UK company from my experience.


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  • Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    We’ve had this before and there is a proper name for it (Pedro knows!), but if the person said they were responsible for signing off on advertising and they then signed the contract, the advertiser can take that at face value. The contract is valid.
    :) Gloomtastic is correct. There are numbers of issues here. The easy answer - As a ‘manager’ the ex-employee would be regarded as an ‘agent’ of the company. As such he has the power to bind the company in a legal agreement relevant to his daily work. However, if he does this while ignoring a rule that such expenditure must be authorized by a more senior level, the company has a right of redress against him. The company ‘generally’ is bound by his actions.

    How much is involved? Have you a copy (or obtained one) of the signed contract?

    Is the creditor a reputable business? How big are they? Have you done business with them before? Is it a try-on?

    Not much point in making a mountain out of this if it is either a shady vendor of advertising space or a paltry sum of money.


  • Registered Users Posts: 7,660 ✭✭✭GerardKeating


    dazzymc wrote: »
    If a contract was signed for advertising services by an employee who no longer works in our company, is it a legally binding contract? The owner never authorised the signing and they are now threatening legal action.

    Have you confirmed with the former employee that they signed the contract.


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