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Is it the company behind the trading name or the trading name which is the contracting party to the contract? Does a trading name have legal capacity to enter into a contract?
Identifying the parties to a contract
In a situation where a company operates under one or more trading names, then it is the company (a legal entity) behind the trading name which is the contractual party; a trading name by itself has no legal personality to contract by. For further information as to the different business vehicles available for a business to operate through, see Practice Note: Forms of business vehicle.
Where a company operates under a trading name then, within a contract entered into by that company, the contracting party is usually expressed to be, eg: Example Company Limited trading as Example Trading Name (with company registration number 123456). Although helpful, it is not essential to specify the trading name of the company in the ‘parties’ section to the contract as it is the company (not the trading name)
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