Question

You work for RBEY, Inc., a corporation that manufactures wooden furniture. You are a procurement officer, responsible for purchasing raw materials that will be converted in to the furniture. As the main point of contact for suppliers, you have built a relationship with many of them. You routinely negotiate purchase contracts back and forth by e-mail. Your e-mail signature includes your title and the company name under your name. When it is time to finalize a contract, RBEY is the name of the party to the contract, and you sign your name on a line above your typed name, title, and company name. A friend of yours, who has a little knowledge of contract law, asks how you can possibly sign your name to the contract without including the term "as agent for RBEY." Explain how you can avoid personal liability on the contracts even without adding this phrase.

Answer 1

Answer and Explanation:

Company employee can sign the contract on its behalf only if he/she has the authority to do so. In such case, the contacts does not come with personal liability but liability to an organization. Since my name is followed by the company name on the contract, it becomes the contact for the company. It is implied that the person who signs on the behalf of company is an authorised personnel of the company. Hence the term ' an agent for RBEY' is implied and need not be written.