A Year Ago, You Negotiated a Contract with a Supplier

Question

Examlex · Accepted Answer

The Answer is You can't be sued by the supplier for breach of the contract because you were acting on behalf of your employer, and the contract is actually between it and the supplier. However, you may be liable to your employer for the losses it sustains as a result of the lawsuit! If, for example, your employer had not given you authority to act for it for purposes of entering this contract, your employer could sue you for breaching the terms of your employment contract by binding it to the supplier contract: your employer sustained the loss as a result of your breach of the contract you have with it.

A Year Ago, You Negotiated a Contract with a Supplier

Definitions: