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
- 1 Stock You Can Leave for Your Great-Grandkids
- Is Blackstone Group About to Make a $1.5 Billion Deal?
- 3 Cheap Growth Stocks You Can Buy Right Now
- 5 Ways Getting Married Can Affect Your Taxes
- Microsoft vs Google: Did Samsung Just Tip The Tablet Battle?
- Why Twitter Doesn't Turn a Profit -- And Whether Investors Should Worry