Commentary

49.5 Drafting points—authority of company signatories

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

49.5 Drafting points—authority of company signatories

| Commentary

49.5 Drafting points—authority of company signatories

The following points should be considered when stating that one person is signing or doing something on behalf of another person or a company:

  1. (a)

        The more senior the person in a company who signs, the more difficult it will be for the company to disown the contract on the basis that the person who signed it was not authorised to so. Senior employees are likely to have ‘apparent authority’ to sign contracts on their company’s behalf. Even middle-ranking employees may have apparent authority, particularly if the contract is within their area of work

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