How to Sign a Contract

How to Sign a Contract

How do I sign this contract? Thats a question we often get from our clients so we thought we would set out some information on where to sign a contract, when you need to initial a contract page and when you need a witness. Signing contracts isn’t always as easy as it sounds and can become confusing.

In this article we explain everything you need to know about signing a contract by answering three main questions.

Does the contract need a witness?

A witness is a third party who signs the contract to verify the authenticity of the signatory of the legal document. Some contracts, such as business contracts, do not need witnesses, while others, such as Wills, require two witnesses.

Are you signing the contract personally or on behalf of a company?

If you sign a contract as an individual, you are personally liable for the fulfilment of the agreement. On the other hand, if you sign a contract on behalf of a company you are not personally liable as the company is a separate entity. The format of the signature block differs depending on whom you are signing for. If signing personally, you will sign above your name. When signing on behalf of a company, you will sign below the company’s name and print your name next to “Per” below the signature. (Refer to the diagram below for illustrations)

Does the contract require a company seal?

A company seal is not typically required for an agreement to be valid. However, depending on the company’s articles a seal may be required.
Depending on your answers to the above questions there are six signature block outcomes which are depicted in the diagram below (click to enlarge):

 

Thanks to our legal assistant Abrisham Noghrekar for helping us write this article. If you have any questions on how to sign a contract please contact any of our lawyers.

By | 2017-06-01T11:07:19+00:00 February 17th, 2016|Commercial Law|

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