limited company - limited liability?

[samuel23]

If a limited company places an order for some advertising and then the director that placed the order leaves, and the other director(s) haven't agreed to the order can i still insist they carry on with the order? So far the goods haven't been printed, there is no order number in writing (only a verbal agreement over the phone) but I have put in time and effort to arrange this, and now it seems it was a waste of time.
Can I claim from them?

[MustafaTickl]

Just write it off and go and find something profitable to replace it. There is absolutely no point in throwing good time and money after bad just because you are niggled.

[Buenchico]

If an authorised representative of a company places an order, then that company has entered into a contract. This applies even if there is nothing in writing. So, in law, you're entitled to deliver the order and demand payment or to seek compensation from them for the cancellation of the order.

In practice, however, all that the current directors would need to do would be to state that their former colleague was only making an enquiry and not placing an order. A court of law would have to decide 'on the balance of probabilities' who was in the right. Unless you could contact the former director and get his confirmation that he placed the order on behalf of the company, you would be at risk of losing out.

It's extremely rare for MustaTickl and I to be of the same mind but, for once, I have to agree with him.

Chris

[samuel23]

Thanks for your answers guys. I didn't think I'd be able to get them to pay up, but I'm just a bit miffed that I wasted my time

[auzzie]

Surely this doesn't just apply to Ltd companies? I would have thought any company would fall under these rules.