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
- Apple Inc?s iOS 9 Ad Blocking: Winners and Losers
- Can Keurig's Kold Spark A Turnaround?
- TrueCar, Inc. Soars 11% Higher Today -- What Investors Need to Consider
- Why Acorda Therapeutics Is Soaring 12% Today
- This Costco Store Closure Spells Trouble... for Staples Inc.
- Why This Investor Is Betting $2.5 Billion on General Electric