aztect
Apr 23, 2013, 08:03 PM
I'm having trouble doing my homework,
Say if a Senior Director who reports to the managing director of company A (take note that Company A has 8 other directors which the chair/CEO of company A was a founder of Company C which Company A is a fully owned subsidiarity of). The senior director and managing director has a limit of $240,000 and $500,000 respectively of entering into a contract on behalf of company A, in which if the contract limit is exceeds the maximum amount of $500,000 then Company A will require the approval of Company C in order to enact the contract.
Now say if the senior director advises company B for a takeover, which B agrees at a discounted price of $500,000 from ($699,023.51), the fee only applies if the takeover is successful, the senior manager then gets the contract from company B at the discount price in which he signs it and then forges the signature of his manager director who he reports to as he had a misadventure. Then the contract is processed, the fee is paid at a discount, however Company A finds out about the forgery and wants company B to pay the full amount.
There are 3 parts to this question
a) is company A bound by the new contract
b) what would've happened if the senior manager forges the signature of not only the managing director and the CEO.
c) and if company B knew accurately of the forgery, then would company B, be liable to pay the full fee back due do their knowledge of the forgery and not notifying company A of it?
I have a general idea of the legal issues, but I would like to have some third party views to it, thanks.
Say if a Senior Director who reports to the managing director of company A (take note that Company A has 8 other directors which the chair/CEO of company A was a founder of Company C which Company A is a fully owned subsidiarity of). The senior director and managing director has a limit of $240,000 and $500,000 respectively of entering into a contract on behalf of company A, in which if the contract limit is exceeds the maximum amount of $500,000 then Company A will require the approval of Company C in order to enact the contract.
Now say if the senior director advises company B for a takeover, which B agrees at a discounted price of $500,000 from ($699,023.51), the fee only applies if the takeover is successful, the senior manager then gets the contract from company B at the discount price in which he signs it and then forges the signature of his manager director who he reports to as he had a misadventure. Then the contract is processed, the fee is paid at a discount, however Company A finds out about the forgery and wants company B to pay the full amount.
There are 3 parts to this question
a) is company A bound by the new contract
b) what would've happened if the senior manager forges the signature of not only the managing director and the CEO.
c) and if company B knew accurately of the forgery, then would company B, be liable to pay the full fee back due do their knowledge of the forgery and not notifying company A of it?
I have a general idea of the legal issues, but I would like to have some third party views to it, thanks.