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Ben Jones
Ben Jones, UK Lawyer
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A member of staff signed a 3 year contract that he did not

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a member of staff signed a 3 year contract that he did not have authority to and to which the partners had not given consent, what is the legal position as the company is threatening to sue for total contract value
I have told them the contract is not valid as it was not authorized by a partner.
Hello what type of contract was this for?
Customer: replied 2 years ago.
it is a contract with Sales force a computer software co at approx £8k/an
Thank you for your response. I will review the relevant information and laws and will get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you
This situation concerns what is known as ‘apparent authority’, where an agent of a company enters into an agreement when they may not have the express authority to do so, but nevertheless the other side believed that they did and enters into a contract based on that presumption. The leading case on the subject is Racing UK Ltd v Doncaster Racecourse Ltd and another. I will not go over all of the facts as you can just read them on this summary page: You can see that the facts are similar – an employee of the Council had entered into an agreement with Doncaster when they did not have the authority to do so. What the court decided is that the Doncaster agreement was binding on the Council. On the evidence, there was nothing which would lead to a reasonable inference that the Council had authorised the employee to act on its behalf in entering into the agreement. However, there was representation to Doncaster that the employee had apparent or ostensible authority to sign the agreement with and the company had relied on that representation, so the employer would have been liable for the contract. As you can see, this is quite fact specific so it does not mean that any such agreement will be legally binding and only a court can decide that by looking at the facts of the case. So you can challenge it by denying the employee had authority, although the other party could try and counter-challenge it as above. I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Hello, I see you have read my response to your query. If this has answered your question please take a second to leave a positive rating by selecting 3, 4 or 5 stars from the top of the page. I spend a lot of time and effort answering individual queries and I am not credited for my time until you leave your rating. If you still need further help please get back to me on here and I will assist as best as I can. Many thanks.
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