Who Can Sign a Contract on Behalf of a Company

When it comes to signing contracts on behalf of a company, it`s important to understand who has the legal authority to do so. The person signing the contract will be legally binding the company to the terms of the agreement, so it`s crucial to ensure that the right person is signing.

Here are a few key things to keep in mind when determining who can sign a contract on behalf of a company:

Authorised Signatories

Typically, only those individuals with explicit authority – through a board resolution or delegation of powers – are authorised to sign contracts on behalf of a company.

This may include high-level executives such as the CEO or CFO, or other managers who have been given explicit authority to sign contracts. The company’s articles of association may also define the limits of these authorisations.

However, authorisations vary from one company to another, and it`s important to ensure that you are familiar with the specific rules in place. If in doubt, it is always best to check with the company’s legal department or board of directors.

Power of Attorney

Another way that contracts can be signed on behalf of a company is through the use of a power of attorney (POA). This allows an individual to act as the company`s representative for a specific task – such as signing a contract – and makes it easier for the company to conduct business transactions.

The POA should be specific, detailing exactly what the representative is authorised to do, and it should contain a clear expiry date.

Third-Party Contracts

In some cases, it may be necessary for a company to sign a contract with a third party, such as a supplier or vendor. In such cases, it`s important to check whether the third party requires a specific individual to sign the contract.

For example, they may require that the signatory has a certain level of authority within the company or that they have a specific job title.


In summary, only individuals with explicit authority should be signing contracts on behalf of a company. This might be high-level executives, managers, or others with delegated power. Power of attorney may also be used, but these should be specific and clear, and the third party contract should be checked for any specific requirements.

Taking the time to ensure that the right person is signing contracts on behalf of your company is important for legal and financial reasons, as it ensures that the company is represented in the best possible way.

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