supplies and if sales people could not
quote prices and complete sales. While
these employees may not be Agents of
the company able to execute a contract to
sell the entire company to someone, they
typically do have the authority to bind the
company to these daily transactions.
If it appears that the employee has
authority then their actions bind the
company. This appearance can be
accomplished by providing the employee
with company identifiable forms or
stationery, a truck with a company logo, or
just having them work from the company
office.
In all of these cases, it is reasonable for
the other person to assume that this
employee has authority to enter into the
transaction being discussed and therefore
the threshold of Authority has been met.
Our client’s contract with the debtor is
legally binding.
It is apparent that as third parties it’s
difficult to determine who has authority to
sign. Mostly authority levels are internal
issues that need to be addressed as such.
So now you know a bad excuse versus
an unsophisticated business person who
is just hoping this excuse will work. So,
typically don’t just explain the concept of
Authority, but ask a series of questions to
learn more about whom you are dealing
with while leading the debtor to this
conclusion. of credit availability.
For example: how many people work for
the company, who purchases the office
supplies, who makes the sales, where do
they work from, do they have business
cards or access to company stationery,
do they bind the company to these
transactions?
From there it is easy to explain Authority
and volunteer to send them link to
information of what a valid contract
entails, making your contract a binding
one. From that point forward, you will
refuse to discuss that issue and get back to
the real issue of collecting the money that
is legally owed. Simply stated, we no longer take
responsibility for our actions that may lead
to bad things that occur to us due to our
failure to use proper judgment or common
sense. We have, and the courts have
affirmed, taken the position that unless
we have first been warned beforehand that
responsibility falls on the other person
or company. But even then that does
not prevent anyone to continue to place
the blame on others rather than take the
responsibility for their actions that cause
bad things to happen to themselves and/
or others.
Already collection agencies and advocates
are required to put a notice on their
written communications to debtors that
the purpose of their letter is to collect a
debt lest someone confuse the writing as
just a friendly greeting to ask how one has
been.
Perhaps in the near future we will be
required to place a warning on the credit
application stating that applying for or
obtaining credit can be a detriment to
ones' financial health or that too much
credit can lead to insolvency and/or a poor
credit rating. Or perhaps placing a notice
on an invoice or statement of account that
payment made beyond the terms shown
on the bill could lead to a reduction or loss
At what point do we, as a society, start
recognizing that we have choices and free
will and use common sense, start accepting
the responsibility for our actions, and stop
pointing the finger at others for our poor
judgment?
Wasilwa Miriongi is a Certified
Credit
Professional
currently
working as the Managing Director,
Del Creder Credit Management
Limited. You can engage him on
this or related matters via email at:
WMiriongi@gmail.com.