Lan entrusted Liao to negotiate business with a company and authorized Liao to conclude a contract in his own name. The company also knows that Liao is entrusted by Lan. After the negotiation between the two parties, Liao signed a contract with the company in his own name. After the contract dispute, the company found Lan, who said that the contract was concluded by Liao in his own name and had nothing to do with it, so there was a dispute between the two sides. So, how does the law stipulate this?

The lawyer replied.

According to the provisions of the contract law, the agent enters into a contract with a third party in his own name within the scope of authorization of the principal, and if the third party knows the agency relationship between the agent and the principal when concluding the contract, the contract will directly bind the principal. Although Liao signed the above-mentioned contract with the above-mentioned company in his own name, as the company knew that Lan entrusted Liao and Liao's signature was also within the scope of his authorization, the contract also directly bound Lan.

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Contract law of the people's Republic of China

Article 402 A contract concluded by the agent in his own name with a third party within the scope authorized by the principal, if the third party knew the agency relationship between the agent and the principal when concluding the contract, the contract directly binds the principal and the third party, unless there is definite evidence to prove that the contract only binds the agent and the third party.

The trustee enters into a contract with a third party in his own name, and the third party