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Asked 364 days ago by a user from Califon, NJ
I signed a credit application for my company for trucking services. The trucking services fee is more than quoted so my employer is holding off paying them until the difference is substantiated. The trucking company is threatening me personally because it was my signature that guaranteed payment.
Is this legal or is the employer responsible?
You can only be held liable if the contract specifically stated that you personally guaranteed the contract, which would be unheard of for a standard trucking contract signed off on by an employee. The trucking company might be engaging in some nasty, unethical business practices. You should have the contract reviewed by an attorney and your employer should indemnify you for any potential liability.
Our firm offers a free consultation.
Michael J. Duffy
Duffy Law, LLC
That is a very interesting scenario. Vendors will routinely secure their service agreements with personal guarantees so they have some recourse.
As an employee (non owner) you really should not have been the person who signed the agreement in closely held company situation. If your employer knew however that you were signing this as part of your duties they will likely be "estopped" from claiming you had no authority. The arguments can get rather chewy in a case like this.
I agree that you would be best served with having the agreement reviewed if you do not think your employer will cover you on this.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
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Thanks very much!