A&M Farm Center Inc. v. AGCO Finance LLC

A&M Farm Center Inc. (defendant), managed by Dennis Leek, entered full-recourse leasing agreements with AGCO Finance LLC (plaintiff). Leek also started a separate company, Cable Tech Inc., which defaulted, prompting AGCO to seek payment from A&M. A&M argued Leek lacked authority to bind it to the agreements.

Whether, under Indiana law, a principal is bound by a contract made by its agent only where the agent had actual, apparent, or inherent authority to bind the principal.