What is the potential liability of a salesperson signing a contract for the customer?

Get Legal Help Today

 Secured with SHA-256 Encryption

What is the potential liability of a salesperson signing a contract for the customer?

I am a social media manager and IT for a remodeling company. My boss, the CEO, wants me to give our contracts to our sales team. I am worried about the liability of a sales guy signing a contract for the customer. The issue I have is they are an LLC the sales guy and we are a sole proprietorship. If we allow them to do the contracts what are the legal implications for us? How can we avoid being liable if someone were to claim the sales guy promised them something they didn’t receive? We have a contract in place that has pricing already but I want to play it safe.

Asked on November 5, 2018 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

If the salesman signs without the customer's consent, the contract would not be valid or enforceable against them.
If the customer incurred any costs or liabilities due to the salesman signing the contract, the customer could sue both the salesman and your company (which, if it is a sole proprietorship, means the owner personally) for such losses or costs.
A salesman signing without consent is commiting a crime--e.g. fraud or identity theft--and could face prosecution.
The way to protect yourselves is to not let the salesman sign contracts for customers.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption