Trading as meaning

[winnie_uk]

Hi,

 

On contract - what does Trading As XXXX mean?

Basically - Licence agreement has my name, trading as XXX - does it mean my company is responsible for rent or me personally?

 

Thank you

[unclebulgaria67]

So you are a sole trader and you have a business name ? e.g Fred Smith, trading as Mr Mint.

 

I think you need to read all your contractural obligations and obtain proper legal advice as to where you stand. I suspect that you are personally liable and may want to look at how you are set up.

[BazzaS]

Hi,

 

On contract - what does Trading As XXXX mean?

Basically - Licence agreement has my name, trading as XXX - does it mean my company is responsible for rent or me personally?

 

Thank you

 

Likely both you and the company.

It sounds like this isn't a limited company, so I'm assuming you aren't a director, but perhaps a sole trader?.

 

If it was "BazzaS, director of BazzaS Ltd." then if the (fictional) limited company BazzaS ltd took out a contract, with me signing it as a director, then I have no personal liability unless they seek a personal guarantee.

If the company folds I can loose the funds I used to set up the company but that is what my liability is "limited" to.

 

If I am BazzaS, sole trader and owner of the company "Magnificent BazzaS", and I sign a contract as "BazzaS, trading as Magnificent BazzaS", then the first entity liable is the company "Magnificent BazzaS".

If that company folds and there is still money owed, then I am still personally (as BazzaS, rather than the company) liable for the debt.

[winnie_uk]

Cheers guys for reply,

 

Actually me and my partner are directors of this limited company Trading As .. So basically both directors signed Licence Agreement trading as Lightsource (actually Lightsource Limited).

[steampowered]

If you say XXX trading as YYY, that is normally understood to mean XXX is liable.

 

If you only want YYY to be liable, then you just say YYY because it is YYY who is trading. In this situation XXX should not be doing any trading.

 

Best to sign contracts in the name of YYY, or XXX as director of YYY.

[BazzaS]

Cheers guys for reply,

 

Actually me and my partner are directors of this limited company Trading As .. So basically both directors signed Licence Agreement trading as Lightsource (actually Lightsource Limited).

 

Did you sign as "winnie_uk, director of Lightsource Ltd" (or "director of Lightsource Ltd, trading as Lightsource")?

 

So, does the contract show you as signing as an individual / part of a company that isn't a ltd company, or signing as a director of a limited company?

 

BTW is the name you used the correct company name?

 

Name & Registered Office:

LIGHT SOURCE LIMITED

ALLAN HOUSE

10 JOHN PRINCES STREET

LONDON

W1G 0AH

Company No. 02786123

 

That Light Source Limited is a company dissolved July 2011.....

Edited March 8, 2013 by BazzaS

[citizenB]

Example...

 

Barclays trade as - Barclays Bank - Trade as - BarclayCard - Trade as Mercers - Trade as Connaught.

[winnie_uk]

Did you sign as "winnie_uk, director of Lightsource Ltd" (or "director of Lightsource Ltd, trading as Lightsource")?

 

So, does the contract show you as signing as an individual / part of a company that isn't a ltd company, or signing as a director of a limited company?

 

BTW is the name you used the correct company name?

 

I signed as individual - just Peter X .... And i am director of this limited company.

 

BTW is the name you used the correct company name? - sorry no, i just used this name as example. My company is still running

[unclebulgaria67]

I signed as individual - just Peter X .... And i am director of this limited company.

 

BTW is the name you used the correct company name? - sorry no, i just used this name as example. My company is still running

 

Think when you signed it, if you wanted any protection from limited company status, you had to sign it as director of the company and not just your name. The contract should have been in the limited co. name. As long as the contract was in the company name, then I cannot see a problem.

[winnie_uk]

As long as the contract was in the company name, then I cannot see a problem.

That is my question - in who's name is this contract?

 

Licence Agreement between XXX Ltd and Peter X trading as YYYY (just name of company, not YYYY Ltd)

[unclebulgaria67]

That is my question - in who's name is this contract?

 

Licence Agreement between XXX Ltd and Peter X trading as YYYY (just name of company, not YYYY Ltd)

 

Get proper legal advice. I am sure that I have read of companies doing this, so they can go after the individual and not the company, in the event that the contract is not paid by the company. You should really get a company solicitor or get advice from business link. Unless you have an understanding of what you need to see in contracts, so you have protection under limited company status, then you could be making mistakes.

[steampowered]

That is my question - in who's name is this contract?

 

Licence Agreement between XXX Ltd and Peter X trading as YYYY (just name of company, not YYYY Ltd)

 

There is no 100% definitive answer to this. A court would look at the circumstances and decide what a "reasonable person" would think. Would a "reasonable person" observing the transaction think you were signing on behalf of the company or in a personal capacity?

 

If you said "XXXX Ltd and Peter X trading as XXXX", to me it seems pretty clear that you are signing for the company.

 

If you just signed Peter X, that is more ambiguous. If the other side knows you have a company and that your company would be doing the work, then it would be assumed that you are signing on behalf on the company even though you didn't say this. However if the other side did not know you had a company, then you are looking at personal liability.

 

In future, sign "Peter X on behalf of XXXX Ltd" or just "XXXX Ltd". This leaves no room for doubt.

[BazzaS]

That is my question - in who's name is this contract?

 

Licence Agreement between XXX Ltd and Peter X trading as YYYY (just name of company, not YYYY Ltd)

 

Forget for the moment that one party to the contract is XXXX Ltd : whether they are a limited company or not is irrelevant if they are the "other party". We need to focus on "your side".

 

As the words "director of" are missing from your being associated with your name, and the word "limited / Ltd. " is missing from the companies name of YYYY, I would read that different company "YYYY Ltd" has no involvement in this contract. The Ltd Company doesn't feature, and although one of its directors was involved in signing the contract, they did so as an individual, not as a director.

 

I think you are personally liable for the contract, unless you could convince a court it was a "slip".

One feature that might influence any such decision : is there a (not limited) company "YYYY"? Does it exist / has it traded now or in the past?.

 

One might understand you writing "trading as" instead of "director of " as one error.

One might understand you writing "director of" and then writing "XXXX" instead of "XXXX Ltd" : both errors on their own still leave the original meaning clear.

 

To have both errors together makes it look like you have your own (non limited) company, so both that company and you would be liable.