| Comment | Re: What does 'Its' on contract mean?
In the case where a contract is to be signed and executed by a busineess entity, that business entity, typically represented by some individual will need to disclose some authority in executing contracts. Typically, the individual representing the business entity need have binding authority in executing the contract binding the corporation. This act then, causes some responsibility to be transfered unto the party accepting the contract execution where the authority to bind, as per the role disclosed in the "Its:" line of the signatory section, because the role must reasonable be belived to bind that business entity. Moreover, failure to disclose a position or, in the extreme, where the contract may have been drafted in the name of a business entity but executed by an individual not disclosing his position of authority in the business entity to be bound, could be found, if ever litigated, to have executed that contract in a personal basis; thus, having placed personal responsibility and direct liability on that individual for the performance of the contract.
I would recommend to always enter text stating "FOR: [name of business entity]; Name: [name of individual representing business entity; Its: [position with reasonable or actual authority to bind the business entity]."
Euribiades Cerrud |
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