Question:
Ken,
We install and monitor fire alarm systems for both commercial and residential clients. As many of these commercial buildings are managed by property management companies, we are finding that they are signing the monitoring agreements. We may have contracted the installation with a general contractor, but end up dealing with the property manager when the building is completed or sold. In some cases we have never met the actual owner.
Do I need to have some document that proves to me that they are authorized to enter into this agreement ? Do I need to press for the owner's signature or can it be assumed that since they are managing the property they are acting as the owner's agent?
C. Came
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Answer:
An agent signing for its principal is not liable, the principal is. Therefore you must know the proper name of the principal. If the agent acts beyond his authority, or it turns out he has no authority, then the agent is liable, so you need the proper name of the agent. An agent acting for an undisclosed or non existent principal, is personally liable.
You do not have to get verification from the principal that the agent has authority, although that would eliminate a claim later that the agent wasn't authorized. An agent's claim, without confirmation from the principal, that he has agent authority does not prove the agency.
While on this topic, I want to remind dealers and central stations that my contracts do permit the dealer to act as agent for the subscriber. Therefore the central station can accept instruction from the dealer on behalf of the subscriber. Without that authority the central station, especially one who has entered in a contract directly with the subscriber [the 3 party contract] should not vary from the contract terms without authorization of the subscriber. In plain language, the central should not change codes, verification procedure or call procedures unless properly authorized.
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