does a sale rep have the authority to close a deal on behalf of their employer?

Answer 1

agency by estoppel, the employer is bound to the terms of the contract set forth by the sales rep. first there was a representative of the company. second, the third party relied on the representation. third the third party's position was altered because of the reliance. the company must honour the contract but can sue the sale rep in civil litigation for the damages.

Answer 2

I think the better question is: Can a sales rep complete a deal on behalf of their employer? In which case the answer is NO. The deal is completed with the contract is complete.

When you say "Close a deal" you mean that the terms of the agreement are settled. Some employers expect some sales reps to settle terms and some employers only expect a partial settlement, and some expect only an offer to be made, with no efforts made to settle terms. All arrangements are different.

What to look at is what is either 1) contractually bargained for in the sales rep's work 2) what is typically done at that company.

If a sales rep feels betrayed by a controlling superior, then its helpful to look at past history to understand what a reasonable expectation might be on the part of the rep. If its an out-of-the-blue situation, then the sales rep may feel that a superior has no right to complain about the sales rep's authority. If its typical of the employer to step in and dictate terms, then the sales rep well knows that they have no authority.

And that's my opinion.

Answer 3

It depends on the person's job decription and the scope of their authority as to whether they can do this; if they do, they are representing the company, not themselves. If they did something wrong, they can get fired for it. The employer also has something called vicarious liability. If you buy a defective product, it is not the salesman you sue, it's the company.

Answer 4

If they are given the permission to do so, then yes. It really comes down to their individual job description and functional duties. Verbal consent is NOT good enough. It needs to be expressed in a written source (such as a company policy, job description, etc.).