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Is my father liable, if I sign contract in his name without his consent?Does pa consumer fraud act protect small business owner?

Allentown, PA |

Guy from Merchant Lynx came in asking me about changing to his credit card processing company. He started promising free new credit card machine, no commitment, no cancellation fees, a flat rate of 1.8%, no fees, and he will pay for past credit card processor cancellation fee and he wrote it all on an addendum page. So I filled in my father’s information. Before signing I told him to wait for my father to review the contract. My father was out running errands during the afternoons so he never met the guy. I could not reach my dad, the Merchant Lynx told me I should just sign it. I thought it was okay and I signed the contract and the addendum page. I then asked him to give me a copy of the contract and addendum page but he told me his manager needs to sign it and he will return with copy.

Attorney Answers 2

  1. Best answer

    Generally an agent working for a disclosed principal can execute contracts and agreements that are fully binding on the principal. This is particularly true when the agent is working within the scope of an agency determined by the agreement and/or course of conduct between principal and agent.

    If an agent attempts to disclaim a contract on behalf of a principal because the principal didn't "sign" the contract, that agent may then be liable him or herself for having presumably acted *outside* the course and scope of the agency.

    Where an agent signs the agreement of a principal believing the agreement in the interest of the principal, the principal is generally liable. Many facts exist to determine how that all plays out. Those facts can only be understood in a consultation with an attorney competent in this area of law.

    Disclaimer: Nothing stated herein is legal advice. For legal advice, consult an attorney; I am not your attorney at this time. This response may constitute ATTORNEY ADVERTISING which has not been approved by the Supreme Courts of New Jersey or Pennsylvania or the Court of Appeals of Maryland. I am a federally-designated “debt relief agency” that provides, where appropriate, relief under the U.S. Bankruptcy Code.

  2. It is suggested that your father immediately fax a letter to the company canceling the contract. If they do not respond he should not accept the their product when it is delivered. If all else fails, he may have to retain an attorney.

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