If an unauthorized person signed an electronic contract for my business, am I bound by this contract?
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If an unauthorized person signed an electronic contract for my business, am I bound by this contract?
A person who has access to all of my information intended to change my credit
card processor to a new company. This person provided all the information to the
new company and signed electronic documents including a non-cancelable contract
which the new company now says I am locked into for 4 years. What are my
options?
Asked on December 13, 2016 under Business Law, Nebraska
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You are not bound by the contract because an unauthorized person signed the agreement. The signing by the unauthorized person is fraud in the execution of the contract.
Fraud is a defense to enforcement of the contract. You should assert that defense if you are sued for breach of contract for failure to comply with its terms.
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