If an unauthorized person signed an electronic contract for my business, am I bound by this contract?

UPDATED: Sep 30, 2022

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If an unauthorized person signed an electronic contract for my business, am I bound by this contract?

A person who has access to all of my information intended to change my credit

card processor to a new company. This person provided all the information to the

new company and signed electronic documents including a non-cancelable contract

which the new company now says I am locked into for 4 years. What are my


Asked on December 13, 2016 under Business Law, Nebraska


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You are not bound by the contract because an unauthorized person signed the agreement.  The signing by the unauthorized person is fraud in the execution of the contract.
Fraud is a defense to enforcement of the contract.  You should assert that defense if you are sued for breach of contract for failure to comply with its terms.

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 AttorneyPages.com 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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