Contract for services query

Colleague of mine and his bus. partner ran a small business, this broke up when partner called time.

Colleague now getting bills from a service company, seems partner setup account and signed colleagues name on contract, now services company have sent a solicitors letter, and demanding payment.

Only contract available is faxed copy, original copy never signed.

Any ideas where he stands ??

Did the bus partner forge your friend's signature? Or did he just put both their names down as members of the "partnership"? If the bus partner had signature authority for whatever entity they were members of, then that entity would be on the hook for the services. If the entity was an actual partnership, then I believe all partners are liable for contracts signed on behalf of the partnership. Did your friend know about and accept/use the services? If so, there is little argument that he can make that he now doesn't want to pay for them.

It doesn't make any real difference about whether the contract is faxed or an original - so long as it's not a forgery.

We probably need more details here, such as:

- what type of legal entity/partnership were they members of?
- did both parties usually sign agreements intended to bind all parties?
- did your friend know about the contract when (or after) it was signed and did he use the services in question?
- what does the contract say in reference to who signs it and on whose behalf? In what capacity is your friend referenced in the contract?

Sprite

Sprite,

Thanks for the detailed reply, will try to anwer all points.

WaterSprite said:

Did the bus partner forge your friend's signature? Or did he just put both their names down as members of the "partnership"?

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Thsi was not an official partnership, no documented contracts.Colleagues signature was signed by Partner, and informed at a later date.

WaterSprite said:

If the bus partner had signature authority for whatever entity they were members of, then that entity would be on the hook for the services. If the entity was an actual partnership, then I believe all partners are liable for contracts signed on behalf of the partnership.

Click to expand...

Was just two lads, and partner dropped out and left colleague carrying the can.

WaterSprite said:

Did your friend know about and accept/use the services? If so, there is little argument that he can make that he now doesn't want to pay for them.

Click to expand...

Friend paid first month on recomendation of partner, did not know what was beiong paid for, and has never used services.

It doesn't make any real difference about whether the contract is faxed or an original - so long as it's not a forgery.

WaterSprite said:

We probably need more details here, such as:

- what type of legal entity/partnership were they members of?
- did both parties usually sign agreements intended to bind all parties?
- did your friend know about the contract when (or after) it was signed and did he use the services in question?
- what does the contract say in reference to who signs it and on whose behalf? In what capacity is your friend referenced in the contract?

Click to expand...

No legal Partnership

only contract ever signed, service never used.

Never received copy from services provider, had to chase ex-partner for contract.

Contract states Friends name / Address, no reference to other entities signed on his behalf , or that signature on contract was not friends, but partners in proxy.

My view is they were sold a completely overspecced service , and partner hit the ramp when he seen mess created.... My friend was then contacted with bill for X months service, first and only contact from provider.

Hmm - seems like a bit of a quagmire. Maybe your friend can simply take the position with the service provider that he never signed the contract and cannot be bound by it - he may have tried that already... But the "I didn't sign this, I didn't order it, I don't want it, please leave me alone now" angle may work with them - is there a lot of money involved?

I wouldn't be too concerned initially about a solicitor's letter - some people go straight to the lawyers without passing "go" and they may be just trying to bully your friend. He should reply promptly and try and address this square on - perhaps write back to the solicitor with the "wasn't me, don't know why you are billing me; I didn't sign this contract (which sounds like it must be obvious if your friend's name is on the contract but the signature is clearly by a different person)" approach and then follow it up promptly with a phone call to the solicitor; he may be able to make this go away.

Unfortunately there isn't really a clear answer on the legal position based on what you've outlined - it *appears* that he didn't enter into any obligation, but then there's the fact that he knew of the service and did make one payment for it, which muddies the legal waters somewhat. If things escalate, he should contact his own solicitor to at least get a view on the formal legal position here. It's annoying to have to fork out cash just to be told that you were right all along and don't owe the service provider any money but, if he doesn't owe the money, it would be a tough swallow to pay it anyway for the benefit of a quiet life, which I assume are the choices he's mulling over right now. It will be hard to get the costs back for any solicitor's advice your friend gets at this initial stage - easier, unfortunately, if it all goes nuclear and your friend ends up the prevailing party...

Sorry I can't give you a straight yes/know answer

Sprite

Thanks for response Sprite,

This is a complete mess, 2 lads settin up a business in a pub ....

The monies on contract is large, will update thread with information when have it.

Update:

Company accepted payment up to this date, and contract cancelled, only when solicitor sent on letter, did not respond to my friends same offer 2 weeks previous ...

Thanks again WaterSprite