Three-Seventy Leasing Corp. v. Ampex Corp.
United States Court of Appeals for the Fifth Circuit
528 F.2d 993 (1976)
After negotiations between 370's sole employee Joyce and Ampex salesman Kays (whose boss Mueller then circulated an internal memo confirming Ampex's agreement with 370 and directing that all further communications go through Kays), Joyce signed a document with signature blocks for both parties, though no Ampex representative countersigned it; Kays subsequently sent Joyce a letter confirming delivery dates and installation instructions. When a dispute arose, Ampex argued only its contract manager or supervisor — not salespeople — had authority to bind it to contracts, but the district court found an enforceable contract existed, and Ampex appealed.
Whether a salesperson has authority to bind a company to a sales agreement when the company apparently holds the salesperson out as its agent.