Legal Question in Business Law in Texas

Authority to bind corporation in contracts

Who is legally authorized (with out being privy to governing documents i.e. bylaws)to sign contract on behalf of a corporate entity?

What are the consequences of someone without authority signing a contract on behalf a corporation?


Asked on 4/05/06, 11:35 am

2 Answers from Attorneys
James Grissom Law Office of James P. Grissom

Re: Authority to bind corporation in contracts

Unless designated by a resolution of the directors, only the President or Vice President is authorized. If someone else signs a document to be bound, the Corp. would have to show that the signature is not binding.

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Answered on 4/05/06, 12:34 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Authority to bind corporation in contracts

The corporate officers have the authority to bind the corporation in the officer's official capacity. More often than not, it would be only the president or vice presidents.

If someone doesn't have that authority, they may be assuming the obligation in their personal capacity.

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Answered on 4/05/06, 2:34 pm


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