Please Can I Have Your Autograph Mr Ramsay!

You might have seen some of the recent media coverage of Gordon Ramsay's court case relating to a personal guarantee given to his landlord that was signed using an "automated pen" operated by his estranged business partner and father in law. A significant sum was at stake given the personal guarantee guaranteed the tenant's obligations to the tune of £640,000 per year for 25 years and some issues arose that will matter outside the celebrity world.

Gordon Ramsay was seeking a declaration from the Court that the automated signature was added to the document without his consent or authority and was therefore invalid. As property lawyers we are surprised that a machine signature not operated by the individual was sufficient to bind that individual to a deed but, on the facts, it was!

After a lengthy 8 day court hearing and a substantial judgment the Court decided with reference to historic evidence and previous use of the automated pen that in this particular instance Mr Ramsay's business colleague did have the authority to bind Mr Ramsay to the guarantee and the guarantee was valid.

The practical questions come from the issue of implied and actual authority to sign documents. All organisations should have a clear process for signing documents.-

Best practice is to give actual authority granted by formal powers of attorney, board resolutions, or letters setting out the scope of that person's authority...