Contract signed without consent

[martsa50]

If a company signs a legally binding contract on behalf of another company, without the consent of the other company what can be done about it and who is liable for that contract?

[leclerc]

Re: Contract signed without consent

I think we need more information. Is the Company part of a group of companies or did they have the right to do so?

[Chip Tuesday]

Re: Contract signed without consent

As far as I remeber from what I know of contracts you require the following aspects for a binding contract:

* Agreement
* Consideration
* Certainty
* Intention to create legal relations

Additionally, some contracts require:
* Formalities (think signed, sealed, delivered!)
* Capacity to make a contract

So it depends what the relationship is between the two companies (I have no experience of company law, so please double check!) but it would appear on the very basic facts that there was no agreement and no intention to make legal relations. However, I would seek legal advice on this subject, allowing your lawyer access to all the facts.

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see http://www.gillhams.com/dictionary/276.cfm for brief guide

Ct