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Question:
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Hi Ken,
I went through all your questions and couldn't find this one.
A home was burglarized while the owners were in Florida for the winter. The owner's Daughter and her Husband found the burglary and want to
install a system. The parents won't be home until after the
installation. The Daugher will sign the contracts. How does this
work? Should the contract be made out in the name of the Daughter using
the Parent's address? What if the Parents come home and say no to the
alarm system? What is my liability later if the Parents claim an action
regarding liability?
Thanks,
Roger Bara
Electronic Security Systems, Inc.
Aurora, IL.
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Answer:
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You have certainly asked the right question: What happens if [or when] you get sued? It's not uncommon for an end user to use and pay for the alarm system for years and then disclaim knowledge of the contract and disavow its terms.
The issue raises issues involving the law of agency, fairly complex. The problem is that an agent cannot establish his or her own agency. Only the principal can confirm the agency. Therefore, although the daughter claims she has the authority to bind her parents to a contract you have nothing from the parents to confirm that authority. There are a few precautionary steps I'd recommend in your situation.
You could get the contract signed by the parents.
You can get the contract signed by the daughter. It can be her contract or a contract on behalf of her parents. Because you will be providing the service to the parents, they are really your end users and they should sign the contract, themselves or through their authorized agent, their daughter. The subscriber, and the signature line for subscriber, should read, John and Jane Doe, by Mary Smith, their authorized agent and daughter. Mary signs the contract. If you can get the parents to email or fax you their consent [authorization] that their daughter can represents them and sign the contract on their behalf. Even a phone call [use your cell and preserve the call record] is better than no other form of confirmation. I would also ask the daughter to sign the contract again, as a guarantor.
If you're not prudent enough to follow the above advice then at least try and get the parents to sign the contract or approve the contract when they get back. Or mail it to them and ask them to sign and return it.