contract signed by employee

[wilez]

I live in Illinois and own a small tavern. I contacted my towel service and told them to cancel service. They told me I had a contract. I said that my 2 year contract should have ran out years ago. They informed me that we had another contract signed in 1999. As it turns out, an ex part-time bartender signed a 5 year contract with them and she signed as "owner". This bartender was given authority to sign my checks to pay for deliveries when I wasn't there (beer can not be charged), but she was never given authority to make out the orders, etc. I contacted her and asked her about it. She said she did sign it. She asked if it was something I needed to sign and the service rep told her "No, it's just an ok to continue service. Just as long as we have a signature." Am I bound to this contract? [email protected]

 

[loku]

From the facts you give, you are not bound to the contract. However, you may not be able to prove the conversation your bartender had with the rep. It was plain from what she said to the rep, that there was some level of authority she did not have; therefore, under the circumstances, the rep would be at least aware of the possibility that the bartender did not have authority to sign such a contract.

If you can not prove that conversation, then the question is whether a reasonable person, in the rep’s situation, would have believed that the bartender had authority to sign the agreement. That fact that she had authority to sing checks to pay for deliveries shows some authority. But all the facts and circumstances are considered. She does not need actual authority to bind you, only apparent authority.

Unfortunately, I’d have to say that the court could rule either way on this.