In Focus Point Properties, LLC v. Johnson, the Arizona Appeals Court held that when a trustee signs a contract on behalf of a trust, that individual is not personally liable for breaching the contract. Even if it appears to name only the trustee in an individual capacity.

In this matter, the listing stated that the parties to the listing agreement were the “owner and broker,” and although the trustee signed her name in the signature block, the name of the trust was printed above, showing that the trustee was only signing in her representative capacity. The Court of Appeals said that the trustee was not obligated to personally pay the commission. Makes sense to me as long as the trustee signs on behalf of the trust and not individually. Just be very careful how you sign a document!

Bill Miller has been a lawyer in greater Phoenix, Scottsdale and Paradise Valley for almost 30 years. Give him a call at 602.319.6899 to discuss contracts, agreements or how to sign something!

Comments are closed.