Unauthorized party signing a lease agreement
There are three parties involved: Company A and Company B (owned by the same owner), and Lessor (of equipment).
An employee of Company A signed a lease agreement for equipment with the Lessor, but signed it using Company B's name (without Company B's knowledge or approval).
Company A has gone out of business, and Lessor is claiming Company B is responsible for the lease--even though it was intended for Company A and unauthorized to be entered into as Company B.
Is Company B still on the hook for the lease? Or does it have any grounds to get out of it?
Asked on 4/28/06, 4:33 pm
1 Answer from Attorneys
Matthew King
Wershow & Ritter, Inc. P.S.
Re: Unauthorized party signing a lease agreement
Without seeing any documents, Company B is responsible for the lease. The issue is one of agency - if the employee was an apparent agent of company B, meaning that lessor had no reason to believe that the employee was not authorized, then company B is responsible for the lease. Company B can then go after the employee for the unauthorized lease.
Please do not hesitate to contact me if you have any questions, or would like assistance in resolving this matter.
Answered on 4/28/06, 4:39 pm
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