Corporate & Securities Law

One Person Signing for More than One Party?

By Ken Adams

A reader recently asked as follows: If someone is signing a contract on behalf of more than one party, and that person serves each party in the same capacity, would it be OK to use just one signature block, as in the following example?

ACME HOLDINGS, LLC
ACME ACQUISITIONS, LLC
ACME INVESTMENTS, LLC

By:     ______________________
          Richard Roe
          President

I responded that I’d feel more comfortable with the above arrangement if you added the notation “on behalf of each of the three above-named entities,” or some such. But saving a bit of space and sparing the signatory the ordeal of signing a couple of extra times seem negligible benefits. I have no plans to use such a three-for-one arrangement. But what if one person was signing for, say, six or more parties? Hmmm. Does that ever happen?

Full post as published by AdamsDrafting on July 03, 2010 (boomark / email).