Can anyone sign a contract on behalf of a company?

No. Only individuals explicitly authorized by the company’s governance documents—such as board resolutions or power of attorney—have legal authority to bind the company.

How is signing authority usually documented?

Through formal governance instruments like board resolutions, delegation letters, or powers of attorney that specify who can sign and any limits (contract value, type).

What happens if someone without authority signs a contract?

The contract may be considered invalid or unenforceable, and the organization or individual could face legal or financial consequences.

Are electronic signatures legally binding like wet ink signatures?

Yes, electronic signatures are generally legally valid if they meet jurisdictional standards and are executed by authorized signatories.

How do I verify if a signer has signing authority?

Verify against the organization’s signatory matrix and check supporting documents like resolutions or authorization letters before execution.

What is the difference between delegated authority and apparent authority?

Delegated authority is officially granted; apparent authority arises when third parties reasonably believe someone has signing power based on the organization’s behavior.

Do signing authority rules differ across industries?

Yes, regulated sectors like finance, healthcare, and government often have stricter requirements and audit controls.

Should a company maintain a signatory authority matrix?

Yes, it’s a best practice to define and document who can sign contracts and under what conditions, helping prevent unauthorized agreements.

Your Ultimate Contract Management Resources

Contract Management

Contract Effective Date vs Execution Date: Understanding Why the Difference Matters

Confused about contract effective date vs execution date? This guide explains key differences, timing, and legal considerations.

topics

Resources

Your Ultimate Contract Management Resources

Contract Effective Date vs Execution Date: Understanding Why the Difference Matters

RESOURCES & TOPICS

The Definitive Guide to the Contract Review Process: Steps, Challenges, and Best Practices

Mastering Contract Signing: Your Guide to Efficient and Legal Agreements

Cost Reimbursement Contracts Explained: A Practical Guide for Unpredictable Projects

Unpacking Contractual Capacity: Who Can Legally Sign That Contract?

Navigating Contract Disputes: Your Guide to Prevention and Resolution

Contract Addendum: A Comprehensive Guide to Understanding, Writing, and Using Addendums

Your Ultimate Guide to Contract Templates: Create Agreements Faster and Smarter

Unilateral vs. Bilateral Contracts: Key Differences, Examples, and Legal Insights

Construction Change Orders: Your Guide to Process, Costs, and Getting Paid

What is an Aleatory Contract? Rolling the Dice in Legal Agreements

Bilateral Contract Explained: A Guide to Structure, Enforcement, and Management

Unilateral Contracts Explained: What They Are and How They Work