Is a contract valid if it is signed be an employee who had no right to sign?

My LLC entered into contract with another LLC. The contract was signed by their sales manager. We completed our service. They now will not pay saying the employee had no authority to bind the contract. Is this true?

Asked on August 28, 2013 under Business Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Based upon what you have written about, your company is entitled to payment regardless of whether the other company's employee had the right to sign the agreement or not. The reason is that your company performed services that the other company received. Under the law, you are entitled to get paid.


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