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Employer's liability of contracts

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phuongt

Guest
California -

Hi, I was wondering in what conditions are the employer's liable for employee's action? Actions such as entering into contracts that promise to give an incentive for doing something like buying a car or joining an internet service? Let's say for argument's sake, the employee did not have the power to make such a contract but did so to benefit the company. Is it then a breach of contract on the company's part if the contract does not go through? Thanks.
 


I AM ALWAYS LIABLE

Senior Member
phuongt said:
California -

Hi, I was wondering in what conditions are the employer's liable for employee's action? Actions such as entering into contracts that promise to give an incentive for doing something like buying a car or joining an internet service? Let's say for argument's sake, the employee did not have the power to make such a contract but did so to benefit the company. Is it then a breach of contract on the company's part if the contract does not go through? Thanks.
My response:

An employer would only be liable if the employee was acting with authority of the employer, as the employer's agent; i.e., acting within the "course, scope, knowledge and authority" of the employee's employment.

If the employee is not acting within the course, scope, knowledge and authority of the employer; i.e., no authority to act as the employer's agent, then the employee is directly on the hook.

IAAL
 

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