How can the authority of signatories be verified when concluding a contract?
How can the authority of signatories be verified when concluding a contract?
To minimise potential risks when concluding contracts, signatories should adhere to the principle of due diligence. This involves verifying the powers of individuals acting on behalf of the parties, among other things.
Failure to do so may result in the contract being declared invalid, with the associated legal consequences, including the obligation for the parties to return anything received in connection with the transaction, or compensate for its value and reimburse losses.
This article analyses practical mechanisms for verifying the powers of signatories, which can prevent such risks when contracts are being concluded.
The article focuses on:
- The circle of persons authorised to sign contracts;
- Mechanisms for verifying the powers of signatories.
Read more in the article by EVERLEGAL lawyer for LIGA ZAKON at the link.
- Our expert: Vladyslav Shulkin, Associate at EVERLEGAL.
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