The authority to sign legally binding contracts is called agency. The old maxim, "I never sign what I write; I never write what I sign," applies. Most corporations have policy manuals that spell out what documents an officer of a given rank is permitted to sign, and with whose approval. Often they must be reviewed by the legal department.
Officers have the ability to designate others in the organization who are authorized to sign contracts of specified types and within specified limits. They often have the word "agent" in the title. For example, a purchasing agent or a shipping agent.
Related Fool Articles
- [link link title]
- Articles of incorporation
- Board of directors
- Chairman of the Board
- Organizational chart
- Policy manual
- Purchasing agent
- Shipping agent
Recent Mentions on Fool.com
- Do Home Depot's Big Buyback and Dividend Hike Make Sense?
- Why DISH Network Needs to Offer Another Alternative to the Cable Company
- Is Tesla Motors Hiding Something?
- Retail Recovery Continues: Kohl's Corporation Profits Jump 10%
- The Death of Blackjack and What Games Are Replacing It
- These 2 Billionaires Just Bought More General Motors Shares: Should You Join Them?