Individuals enter into business associations for a variety of good reasons. One is the limitation of personal liability. Corporations, limited liability companies, and limited partnerships all offer this advantage. But when conducting business, individuals must be careful. When signing any document, the individual should include their title and name of the business entity they represent.
The managing member of an LLC accepted an electronically transmitted proposal from a contractor. The individual apparently did not notice that the signature block read “Individually and Managing Member.” The individual was personally sued for payment under the contract.
The other case in this issue involves filed sub-bids on public works projects. While these trade contracts are tied to sections of the contract specifications, they may incorporate by reference other work that is outside of the trade. A drawing listed in the mechanical specifications depicted elements of site improvement work.
