If you set up a business as a capital company, the company becomes a separate legal entity. Your name is no longer valid if you sign contracts between the company and another party. Representatives must be authorized to sign for the company. These representatives may include members of the board of directors, managers and other staff members. If an employee is not allowed to sign a document or contract on behalf of the company, it can create legal problems. Signing conditions are not at the top of the agenda in the heat of a contract negotiation or during a final interview, but it is important to know the rules when an agreement is recorded in a written document. In most cases, directors have the power to bind the company by contract, but this is not always so clear. Real authority and apparent authority are the two types of authority that one can have when signing. The effective authority is, if an agent has obtained an explicit right, to sign for a party; apparent authority is when an officer has received implied authority. Actual authority is often given in writing to document the actions of an agent, while implied authority is implicit in various acts of those the agent represents. A witness cannot be linked to any of the signatories and cannot benefit from the contract. For example, a beneficiary of a last will and will cannot attend its execution.
No employee has the right to sign contracts or agreements involving the use of funds, regardless of the source, or other types of contracts or agreements on behalf of the university that have not been described above. Any contract or agreement involving the issuance of funds or the issuance of academic resources requiring signature on behalf of the university must be forwarded to the Purchasing Director for review and receive a subsequent recommendation to ask the President or Propst/Vice-President to sign the contract or agreement. Each contract, state and banking institution has its own requirements, which a witness or notary must sign to certify a document. To avoid any legal problems, it is important to ensure that the signing of the contract comes from someone who has been authorized by the company to sign. If you want to allow people in your company to sign legal documents on their behalf, you need to make sure it`s legal….