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Sole Trade Rental Agreement


craigamc
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Hi

 

I am a sole trader. We took a water cooler on a trial basis last year and began getting fortnightly water bottle deliveries.

 

In August, deliveries stopped and we recived an invoice for a rental and sanitization charge (which was being billed in advance) To date, no-one has been to do this.

 

We asked them to collect the cooler and cancel our contract - What we didn't know was that we were in a 5 year contract!!!!!!!!

 

It turns out that an ex-receptionist signed the agreement which is in my name - surely this is not legally binding as I'm a sole trader?

 

Can anyone advise?

 

thanks!

Craig

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There is a legal concept called implied authority. Your staff have implied authority to enter into a contract on your behalf, if a reasonable onlooker would think that the staff member has authority to do so.

 

A receptionist has implied authority to enter into contracts for small things like water coolers. However, for a 5 year contract, I think it is arguable that the water company should have known that they would need to deal with the business owner rather than a receptionist. You could try telling the water cooler company that you are not liable for that reason.

 

It is worth making sure you get a copy of the contract and reading it carefully to see what it says about cancellation.

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