Q: If someone else applies for a lease contract on business equipment, but I sign it for that person, am I bound to it?
I worked with a business as a consultant, so the applicant said it was fine for me to sign the lease on her behalf, since I was an authorized representative of her business. She wasn’t available to sign. She applied for the lease in her and her business’ name. Now she’s gone, closed down her business, and the leasing company now says it’s a legal contract, I signed, so I’m on the lease. Am I bound to it? I didn’t put my social security number or any other information down. I didn’t apply for this equipment. I only signed my name and temp title they gave me. Now this person closed their business and skipped town. Since they can’t go after her, they want me to catch up all the back payments and resume the lease, plus pay $250 to transfer the lease in my name. If I have to transfer it in my name, it proves it was never in my name. So how can I be bound to it? I’m confused what their legal justification is to go after me for signing for it. This is in California.
A:
I do not know what thoughts are in the leasing company's head. However, they might feel that you signed the contract so you are a party to it and you are liable. As a practical matter, it looks like you have been left holding the bag. You appear to be the only target that is available to them.
The facts are incomplete, but it looks like the leasing company may have a leg to stand on. It does not sound like you signed it the manner that would make it clear that the signature was only for her. We also do not know if the business was a sole proprietorship or a formal entity.
I have seen a number of these situations. In many instances, the signer cannot get out of the agreement without legal representation.
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Gerald Barry Dorfman agrees with this answer
A: You need to have the actual lease agreement reviewed by an attorney. There's really no way around that. Also, the application if possible. A lot depends on whether you were clearly acting as an agent.
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