US Legal Forms
Legal Resources
Questions & Answers
Contracts
How Can I Make a Company Responsible to Pay a Contract an Individual Signed?

How Can I Make a Company Responsible to Pay a Contract an Individual Signed?

Full question:

If you have entered into a contract with an individual that proves to be a non-entity what is the legal process that must be done to get that persons corporate or other personal affiliations responsible for the monies awarded in that con tract? In other words if I know this non-entity's legal name and business can I just name them before the court to get satisfaction?

Category: Contracts
Subcategory: Assignments
Date: 04/07/2025
State: California

Answer:

There are several options, depending on the facts involved. You may have the other party agree to be a guarantor/surety, or you could have the contract assigned to the other party, relieving the original party of liability.

Apparent authority is a concept used in agency law that refers to the situation that arises when a principal, such as a corporation, indicates to a third party that an officer or agent is authorized to act on its behalf and the third party relies in good faith upon such authority. It is used a defense when implied or espress actual authority does not exist. When the defense is successfully raised, the principal is estopped from denying the authority of the officer or agent.

Apparent authority may arise, for example, by giving someone who has no authority to contract materials, stationery, forms, a truck with a company logo, or letting him work out of the company office. A person with apparent authority but no actual authority may give a price quote on goods or services which is binding on a company.

If you seek to file a lawsuit based upon a breach of contract, it is possible to name any parties that you in good faith beleive may be responsible for your claim.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is a contract that has no legal effect and cannot be enforced in a court of law?

A contract that has no legal effect is often referred to as a void contract. This can occur if the contract involves illegal activities, lacks consideration, or if one party is not competent to contract, such as minors or mentally incapacitated individuals. Since a void contract is unenforceable, neither party can seek legal remedies for breach. It’s important to ensure that all elements of a valid contract are present to avoid this situation.

What is an exception to the rule that a stranger to a contract cannot sue?

An exception to the rule that a stranger cannot sue on a contract is the doctrine of third-party beneficiaries. If a contract is made for the benefit of a third party, that party may have the right to sue for enforcement or damages, even though they are not a party to the contract. This typically applies when the contract explicitly states that it benefits a third party.

Can an individual enter into a contract without being aware of it and still be bound by its terms why or why not?

Yes, an individual can be bound by a contract even if they are unaware of its terms, particularly if they have accepted the terms through actions or conduct. This is often referred to as implied consent. However, courts may consider whether the individual had a reasonable opportunity to review the contract before being bound. Awareness is crucial in disputes regarding enforceability.

Can a person enter into a contract without being aware of it and still be bound by its terms?

Yes, a person can enter into a contract without being aware of it and still be bound by its terms. This typically occurs in situations where the individual has implicitly agreed to the contract, such as by using a service after being presented with the terms. However, the enforceability may depend on whether the person had a reasonable chance to understand the contract.

Can you contract and not know it?

Yes, it is possible to enter into a contract unknowingly, especially in situations involving implied contracts. For instance, if you receive goods or services and do not explicitly reject them, you may be considered to have accepted the terms of the contract. However, the enforceability of such agreements can vary based on the circumstances and the individual's ability to understand the terms.

What can someone do if they believe the terms of a contract they have entered into have been breached?

If someone believes a contract has been breached, they can take several steps. First, they should review the contract to confirm the breach. Next, they may attempt to resolve the issue through negotiation or mediation. If that fails, they can file a lawsuit for breach of contract, seeking remedies such as damages or specific performance. It's advisable to consult with a legal professional for guidance.