Business electricity verbal contract with broker

Len1978

Need some advice an electricity broker rang my wife while I was at work saying they were ringing on behalf of our energy company etc anyway she ended up entering a verbal contract acting on behalf of her father the business owner. I know these contract are legally binding but the company rang the following morning to say that they had not got my wife’s permission to act on her fathers behalf. That being the case does that mean that if she does not give permission because of a mistake they have made by not asking or wording the correct question does that void the contract.

Robin9

You are wise to be wary.

Contact your supplier and see if they have authorised anyone to act on their behalf - I doubt it.

dogshome

Hmmm - Interesting
For years I've seen posts from small businesses who have been shafted by telephone contracts for energy, and in the main there has been no way out.


I'm wondering if in this instance the business is on a 'Sole Trader' basis, in which case the only person who can commit to contracts, is the Sole Trader himself, or a delegated person to whom he's given specific authority.


Whatever the cause I'm glad there is a way out, but these sharks act like leeches when they think they have their prey.
As posted by Robin 9, check with your present supplier

So far as required permission is needed, STOP USEING THE PHONE Have your wife WRITE to the Shark asking that they WRITE to her father seeking permission - In the unlikely event they follow through, the written reply will be NO

Len1978

No they are not authorised by our supplier. Unfortunatly my wife realised too late but it seems they did not get permission off my wife to act on our behalf so they cannot enter us into a contract with a supplier. Would this mistake by them void the verbal contract ?

dogshome

The telephone Sharks operate on verbal contracts, which they very carefully record

On their own admission, they have failed to follow the required conversation procedure and skipped the most vital point:
"Does the person I'm talking to have the authority to negotiate contracts on the firms behalf"

For this oversight, they are stuffed, but they don't give up easily


Follow through on the final para. of my post, it underlines that your wife does not have the authority to negotiate contracts, and moreover it creates a paper trail, the one thing the Sharks hate

Len1978

The guy has rung again they are nothing if not persistent. My wife has asked him if we have a contract with them 3 times to which he never replied and ended the phone call with well you better ring power and deal with them. I hope that that is the end of the matter

macman

Does your wife work for her father's company? Does she own any part of it? If not, the contract is void as she had no authority to make it.