Corporate & Securities Law

Having Two People Sign for One Party

By Ken Adams

In any given contract, the signature block for a legal entity will routinely contain two signature lines rather than just one. Why have two people sign for one party?

I suspect that in most or all contexts it’s because the organizational documents for that entity require that two officers sign all contracts, or contracts worth more than a stated amount.

I suppose if you’re concerned about authorization, having two officers sign would offer greater confidence that yes, the entity had indeed authorized entry into the contract in question. But as I point out in yesterday’s post, if you’re concerned about authorization your best bet would be to seek direct evidence on the subject.

Can you think of any other reason to have two people sign for one party?

Full post as published by AdamsDrafting on April 23, 2009 (boomark / email).