If you’re an employee of a company, and you sign a company contract as just “John Doe,” you might end up being held personally liable for the company’s obligations. (If you’re the owner of the company as a sole proprietor, or the general partner of a partnership, you probably will be personally liable in any case.)
A better way to sign a company contract is to have the signature block:
- clearly indicate that it’s the company, not you personally, that is agreeing to the contract, and that you’re simply signing on its behalf; and
- stating your title.
The wrong way to sign a company contract
Agreed:
John Doe
John Doe
A better way
Agreed:
ABC CORPORATION
by: John Doe, Vice President
John Doe, Vice President
Further reading
- Protecting the Deal Professional from Personal Liability for Contract-Related Claims, by Glen D. West, of the Weil Gotshal firm.
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See also: (list is automatically generated)
- Note-taking in meetings and phone calls: Three easy habits your lawyer will love you for
- Signing a business contract? Be sure your company title is in your signature line
- Clients seem to like Webcam video conferences, with on-line document sharing, better than traditional on-site meetings
- An oral understanding might not get you off the hook for a written contractual obligation
- Forget short contracts – focus instead on short clauses
