WA Paperwork Signed by Employee Without Authorisation - Is Agreement Binding?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Alanm

Member
7 February 2017
2
0
1
I have equipment that is on a 5-year agreement (against my knowledge). The paperwork has been signed by an employee without my authority. Do I have to stand by that under Contract Law?
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
7,731
1,056
2,894
www.hutchinsonlegal.com.au
Depends on factors not disclosed. Could go either way depending on many things. Lawyer's dream situation - no clear cut answer :)

BTW are you leasing from a business, or leasing to a business?

Sort of factors considered:

Frequency of previous course of dealings with the business.

Who used to deal with them, if anyone?

What made the employee think he had authority to make the deal?

What made the other business think your employee had authority to deal with them?

What title does the employee have?

How long ago was it done?

Have you now agreed to the transaction with the other business? In other words have you now ratified the contract/lease

Size of contract $?

Is your business a Pty Ltd or partnership or other?