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Discuss the liability issues associated with purchasing agents actions.

Discuss the liability issues associated with purchasing agents actions.

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  • A purchasing agent represents the principal in negotiating and developing contracts with a third party. A purchasing agent enjoys three kinds of authority, express, implied and emergency authority. Purchasing agents sign purchase orders that commit their principal, i.e. the company to the terms and conditions of the contract. The agent himself has no personal liability towards the contract provided the principal’s name is mentioned in the contract, the involved parties understand and have knowledge of the fact that the purchasing agent is acting on behalf of the principal or the company, the agency relationship is also clearly stated on the contract, and the agent is acting within the scope of her authority. The purchase contract negotiated and signed by the purchasing agent would be considered valid and legal enforceable only if all the involved parties in the contract are capable, the contract subject of the matter is legal, there is mutual consideration and the parties have an agreement on offer acceptance. In absence of any of these components the agreement will become unenforceable under the US Commercial Code.
    • lyadia
    • Dec 05, 2016 at 10:57am

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