When it comes to signing contracts, many people believe that only executives or high-level officials have the authority to do so. However, the truth is that anyone with the legal capacity to enter into a binding agreement can sign a contract.
Let`s break down who can sign contracts:
Individuals: Anyone over the age of 18 who is mentally competent and not under duress or coercion can sign a contract. This includes individuals who are not employed or associated with any business or organization.
Business owners: Owners of sole proprietorships and partnerships have the authority to sign contracts on behalf of their businesses. However, if the business is a corporation or limited liability company (LLC), only authorized individuals such as officers, managers or members can sign.
Employees: Employees can sign contracts on behalf of their employer if they have been authorized to do so. This authorization can be given through a signed power of attorney or by the employer`s policies and procedures.
Agents: Agents can sign contracts on behalf of their principal if they have been granted the authority to do so. Typically, agents are individuals or entities who have been hired by the principal to perform a specific task, such as a real estate agent representing a seller.
Guardians: Guardians can sign contracts on behalf of their wards if they have been legally appointed to do so. This is commonly seen in cases involving minors or individuals who are incapacitated.
In conclusion, the ability to sign a contract is not limited to high-level officials or executives. Anyone who is legally competent and authorized to act on behalf of another person or entity can sign a contract. It`s important to ensure that the person signing the contract has the necessary authority to do so, or the contract may be considered invalid.