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Lawgirl, Lawyer
Category: Legal
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Can the same person sign a contract or agreement (such as a ...

Resolved Question:

Can the same person sign a contract or agreement (such as a licensing agreement) for both parties? The two parties are corporations, legally independent of each other.
Submitted: 9 years ago.
Category: Legal
Expert:  Lawgirl replied 9 years ago.
Does the same person have signing authority on behalf of both corporations?
Customer: replied 9 years ago.
Reply to Lawgirl's Post: the person was the COO of one corporation, where he had signatory authority and a Board member of the other corporation where he was a Vice President, which apparently gave him signatory authority
Expert:  Lawgirl replied 9 years ago.

Dear graisl:

Thank you for your question.

If he has authority to bind both companies with his signature, then he can sign the document on behalf of both companies. Ultimately, the companies would have recourse against him if he is entering into the agreements against the welfare of the companies and in his own best interests. However, what he is doing is legal.

Please let me know if you have any other questions, or require clarification of this matter. Otherwise please hit "ACCEPT", so I may receive credit for my response. Tips and feedback are also appreciated.

Good Luck!


Customer: replied 9 years ago.
Reply to Lawgirl's Post: Would the fact that one of the corporations is a not-for-profit organization (where he was the COO)complicate the issue?
Expert:  Lawgirl replied 9 years ago.

As long as he has signing authority, he can enter both companies into the agreement, independent of the nature of the entity. This means that even if a corporation is a not-for-profit, if he has authority, he can bind it to a contract.

If he entered into the contract and it was not in the best interests of the companies, the companies' boards of directors and/or shareholders may be able to hold him responsible for the decision.

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