QUESTION
Will the employee be personally liable for the machine?
Asked on Jul 21st, 2013 on Bankruptcy - Colorado
More details to this question:
Lily makes a contract to order a machine from Japan for 2 million. She communicated with the Japanese company by email using her own name but not the company’s name. The company has now been liquidated.
5 ANSWERS
Bankruptcy Attorney serving Florissant, MO
at
Law Offices of Thomas Corcoran Phipps
Update Your Profile
If she had the authority to bind the company and communicated that to the other company, she will not be liable.
Answered on Jul 27th, 2013 at 1:59 PM
Bankruptcy Attorney serving Walnut Creek, CA
at
Alan E. Ramos Law Offices
Update Your Profile
It is necessary to look to the language of the contract. If the contract is between Lily and the Japanese company, Lily is presumably liable for the debt. If the contract is between the American company and the Japanese company, the American company is liable for the debt, unless Lily personally guaranteed the debt. The devil is always in the details. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Additional information could change the context of the question and materially change the answer.
Answered on Jul 26th, 2013 at 1:36 AM
Personal Injury Attorney serving Glendale, CA
at
JT Legal Group
Update Your Profile
Should not be, but it all depends on the exact details.
Answered on Jul 26th, 2013 at 1:36 AM
Regulatory Attorney serving Spokane, WA
Partner at
Deissner Law Office, P.C.
This is what is called an agency law question. If the Japanese company had no idea she was acting as an agent for someone else she could face personal liability. But it is hard to believe they sold her the machine without knowing about the company and if they knew she was acting as agent for an undisclosed principal she might not be on the hook. Complex question factually.
Answered on Jul 26th, 2013 at 1:36 AM
Deborah F. Bowinski
Really? No written contracts of any sort for a purchase that large? You all are crazy.
Answered on Jul 26th, 2013 at 1:35 AM