Is a contract legally valid if it’s between 2 businesses and 1 of the businesses doesn’t

UPDATED: Oct 1, 2022

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Is a contract legally valid if it’s between 2 businesses and 1 of the businesses doesn’t

I entered into a vendor-progam with a bridal shop while a distributor for a direct sales company. I am no longer with the direct sales company and want to terminate the contract with the shop, however they refuse to terminate it. My name is not on the contract but a name I used for a facebook page which is technically not a business. I don’t have a DBA nor are there any bank accounts with the FB name on them and nothing that states it’s an actual business or company. Is the contract valid when since it doesn’t have my legal name on it anywhere but the FB page that I advertised the products from the direct sales company?

Asked on January 5, 2018 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

There are two ways to look at this, and neither is good for you:
1) The contract is valid, because even if you signed it using a different name (the name on FB), *you* still signed it. If they can show that you were the one to execute the contract, they can show that you agreed to it, and therefore are bound/obligated to it. Your correct name is not a magic word--it is not necessary if they can show your agreement to the contract.
2) Alternately, it could be viewed that you committed fraud--lied about something (your identity) in order to get someone else to enter into an agreement with you. In that case, they can sue you for any/all costs that your fraud caused or will cause them--and also potentially press criminal charges against you. It is likely better to simply accept 1) above, rather than try to fight and prove you are not bound by the contract, since if you are not bound, you committed fraud.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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