This Agreement Is Signed On
If an entity is a party to a contract, it is essential that the signature block correctly identifies the party signing on behalf of that entity. For example, if someone signs as the president of a company, the signature block should look like this: each party must receive an original signed copy of the contract for their files. In other words, if there are two contracting parties, two identical treaties must be signed. An original copy of the contract should be sent to you, and an original copy should go to the other party. This may sound fundamental (and it is!), but you`d be surprised how often it slips into the hustle and bustle of business. While you don`t have to sign an agreement for it to be valid, why would you want to take this opportunity? There is absolutely no better way to prove that a party intends to be bound by a treaty than to whip it and show its signature on the document. If it is possible that the parties to a contract may not sign it at the same time, you may want to consider including a section in the contract that provides that the contract is not legally binding unless it is signed by both parties. Why is this so important? Because the correct signature on behalf of a company prevents the person signing the contract from personally fulfilling the company`s contractual obligations. The importance of this cannot be over-emphasized. Obviously, you don`t want a company to say that they don`t have to abide by the contract because it was signed by someone who wasn`t allowed to do so. Therefore, if the other party is a corporation, you need to be sure that the corporation does exist, that the person signing on behalf of the corporation has the authority to do so, and that the contract has been approved by the shareholders or directors of the corporation. You negotiated an important agreement, you reduced it to a written contract, and now you are ready to sign on the points line.
Most people think that signing a contract is a simple formality. However, it is important that you do not give up your vigilance at this stage. Whether you sign the contract correctly can mean the difference between a smooth business transaction or a chaotic legal dispute. While a contract doesn`t need to be dated to be valid and enforceable, it`s a good idea to do so. Dating a contract will help you identify it positively later if necessary and help you put it in the right chronological context. In addition, in Michigan, it is legal to be in front of a contract. In other words, you can expect your contract to be concluded “from” or “effective” a date before the date of signature of the contract. If this is the case, the contract takes effect retroactively “ab” or “effective” to that earlier date. .