Am I bound by a contract not signed personally by me?

[thos19]

What is the name of your state (only U.S. law)? MA

Back in May of 2014, my fiance who had just moved in with me, convinced me to change my heating oil supplier to one she had used in her previous residence. She entered a price contract with this oil company for $3.599 per gallon which would be a fixed price of up to 1000 gallons of heating oil or the expiration date of April 30, 2015, which ever came first. She entered this contract after a pointed discussion with the oil company's representative that in the unlikely event that the price of oil went below the lock price of $3.599, we would be charged the lower price. Also agreed was a budgeted payment plan of $300 per month.

As we are all aware, oil prices have come crashing down over the past few months. However, the written contact signed by my fiance does not have any language for the lowering of the price in this scenario, the salesperson claims they never discussed a potential lower price adjustment, and we have been charged the $3.599 rate for our first 2 oil deliveries.

I have attempted to discuss with the supplier about the discrepancy, but not surprisingly they will not budge off the written contract terms. I have asked them if they would compromise on the rate somewhere in the middle, but to no avail.

I have been wondering if the contract is in fact enforceable by law. My fiance signed the contract, not me. Our residence is a single family home owned solely by me. Am I liable if I did not sign the contract and bound by its terms (including not using an additional supplier with a lower price)? If I am not, what is the extent to the liability of my fiance, since she doe not own a home/furnace which would require the purchase of heating oil. The contract is based on consumption, with automatic deliveries. If she has no usage requirements, does the contract simply expire on April 30th if she does not accept/purchase any oil deliveries? Also, if so, do I have any recourse to recover the prepayment funds held in escrow (all payments made by me by personal check), or can they keep the funds and allocate them however they want and at whatever rate they wish?

Thank you in advance for any advice of how or how not to proceed.

 

[quincy]

What is the name of your state (only U.S. law)? MA

Back in May of 2014, my fiance who had just moved in with me, convinced me to change my heating oil supplier to one she had used in her previous residence. She entered a price contract with this oil company for $3.599 per gallon which would be a fixed price of up to 1000 gallons of heating oil or the expiration date of April 30, 2015, which ever came first. She entered this contract after a pointed discussion with the oil company's representative that in the unlikely event that the price of oil went below the lock price of $3.599, we would be charged the lower price. Also agreed was a budgeted payment plan of $300 per month.

As we are all aware, oil prices have come crashing down over the past few months. However, the written contact signed by my fiance does not have any language for the lowering of the price in this scenario, the salesperson claims they never discussed a potential lower price adjustment, and we have been charged the $3.599 rate for our first 2 oil deliveries.

I have attempted to discuss with the supplier about the discrepancy, but not surprisingly they will not budge off the written contract terms. I have asked them if they would compromise on the rate somewhere in the middle, but to no avail.

I have been wondering if the contract is in fact enforceable by law. My fiance signed the contract, not me. Our residence is a single family home owned solely by me. Am I liable if I did not sign the contract and bound by its terms (including not using an additional supplier with a lower price)? If I am not, what is the extent to the liability of my fiance, since she doe not own a home/furnace which would require the purchase of heating oil. The contract is based on consumption, with automatic deliveries. If she has no usage requirements, does the contract simply expire on April 30th if she does not accept/purchase any oil deliveries? Also, if so, do I have any recourse to recover the prepayment funds held in escrow (all payments made by me by personal check), or can they keep the funds and allocate them however they want and at whatever rate they wish?

Thank you in advance for any advice of how or how not to proceed.

The contract your fiancé signed should be enforceable as written. She should have read the contract carefully before signing. If she had, she would have noticed the omission of the lower price provision and not signed the contract.

One of the risks of locking in rates is that the rates may fall. Rates generally rise so the gamble your fiancé took at the time to lock in the $3.599 rate could be seen as smart. But is WAS a gamble and it was one that she lost.

Because the contract is between the company and your fiancé, it will be your fiancé that is bound by its terms and it will be she who will need to negotiate for a change in the terms or to cancel the contract. She should read the contract over carefully now to see what penalties might exist for early cancellation.

 

[Just Blue]

The contract your fiancé signed should be enforceable as written. She should have read the contract carefully before signing. If she had, she would have noticed the omission of the lower price provision and not signed the contract.

One of the risks of locking in rates is that the rates may fall. Rates generally rise so the gamble your fiancé took at the time to lock in the $3.599 rate could be seen as smart. But is WAS a gamble and it was one that she lost.

Because the contract is between the company and your fiancé, it will be your fiancé that is bound by its terms and it will be she who will need to negotiate for a change in the terms or to cancel the contract. She should read the contract over carefully now to see what penalties might exist for early cancellation.

I have to wonder how the GF was even allowed to enter this contract on a home that she has no legal right to. Both by the OP and the Oil Company.

 

[quincy]

I have to wonder how the GF was even allowed to enter this contract on a home that she has no legal right to. Both by the OP and the Oil Company.

In landlord/tenant relationships (for example), the landlord can require that tenants have all utility services in the tenants' names. The tenant will be the one responsible for paying all charges as they become due. It would not be unusual, therefore, for a utility company to enter into an agreement with a resident of a home even if the resident did not own the home.

 

[thos19]

I have to wonder how the GF was even allowed to enter this contract on a home that she has no legal right to. Both by the OP and the Oil Company.

That is my fault as she was home and negotiated and signed on our behalf as she felt she had a prior personal relationship with the company. It was naive on both our parts.

I should have been more diligent and reviewed the contract before either of us signed. Since the price going down was hardly a consideration at the time, I did not address and until we received our first bill. My fault and I accept the consequences. I thought it couldn't hurt for another opinion via this forum.

 

[Zigner]

HOWEVER, if the bill remains unpaid, then the utility is free to refuse to service that address.

 

[Just Blue]

In landlord/tenant relationships (for example), the landlord can require that tenants have all utility services in the tenants' names. The tenant will be the one responsible for paying all charges as they become due. It would not be unusual, therefore, for a utility company to enter into an agreement with a resident of a home even if the resident did not own the home.

But this was not a rental. This was a ownerlivingthereproperty.

 

[quincy]

But this was not a rental. This was a ownerlivingthereproperty.

Right.

thos19 was aware, however, that the residence was being heated and that his fiancé signed the agreement with the utility to provide this heat. Although his name is not on the agreement, his residence is the one that can be affected if the bill is not paid. Service to the home can be shut off for non-payment.

It will be in his best interest now to see that all terms of the agreement with the utility are met.

 

[LdiJ]

Right.

thos19 was aware, however, that the residence was being heated and that his fiancé signed the agreement with the utility to provide this heat. Although his name is not on the agreement, his residence is the one that can be affected if the bill is not paid. Service to the home can be shut off for non-payment.

It will be in his best interest now to see that all terms of the agreement with the utility are met.

I agree...however he would also be free to contract with another supplier, as he is not a party to the current contract.

 

[justalayman]

But this was not a rental. This was a ownerlivingthereproperty.

there is also another situation that ties the OP to the contract:

That is my fault as she was home and negotiated and signed on our behalf as she felt she had a prior personal relationship with the company. It was naive on both our parts.

it appears girlfriend was given a special power of attorney to negotiate and sign the contract on behalf of the OP. While that is more difficult to argue (for the oil provider) it appears to be wholly valid based on the OP's statements.