Authority of Signatory to Bind the Guarantor

When entering into an agreement on behalf of a corporation: NAME OF CORPORATION e.g. XYZ, Inc. Business owners should also include the name of their corporation or limited liability company on their letterhead and email signature block.

A responsible officer of each party has read and understands the contents of this Agreement and is empowered and duly authorized on behalf of that party to execute it. See All (9)

Usually, an officer of the corporation and others authorized to sign contracts can legally sign documents on behalf of the corporation. For a contract to legally bind a corporation, the board of directors must provide authorization.

This usage addresses a standard concern of contract partiesthat whoever signs on behalf of an entity on the other side of a deal be authorized to do so.

The ordinary process for other documents such as letters, forms or general legal documents is that you write 'p. p' before your signature, to demonstrate that you are signing for someone else. This will show the reader that you've signed with the authority of the intended signee.

Both examples identify the business as the signatory, and include the signer's title as a representative signing on behalf of the business. I personally prefer the upper style of signature block, which identifies the business above the signature lines.

Similarly, a president usually has the broadest single power to bind a corporation. You would have to see the operating agreement or a resolution to know for sure. Even a member may not be authorized to bind the Company, just like one shareholder of General Motors is not authorized to bind General Motors.

The date the letter was written. Name, address and contact details. Basic information about the recipient of the authorization letter. A great subject line that gives an overview of the transaction where the letter will be used authorized.