AUTHORITY TO SIGN CONTRACTS

Ethel

Does anyone have a policy or statement regarding delegating authority to sign contracts? We've had some bad surprises from contracts signed by mgt employees that we were not aware of. Really, Realllllllllllllllly could use help on this one.

LindaS

We authorize either the Mfg. Director, the president or myself to sign offer letters. Letters signed by anyone else are NOT valid and it states that in our employee handbook.

hrbanker

We are currently trying to find all of the contracts signed throughout the company. In HR alone we have contracts with insurance companies, actuarials, auditors, pension administrators, payroll service and tax service, as well as employment contracts for certain executives. We also have contracts with commissioned sales employees.

Each department has it's own need for contracted service. We don't have a policy, but the people authorized to sign contracts here are all the department heads that report to the CEO. Would I sign a contract without the boss' knowledge? No way! We have great communication and meet every week just to discuss department issues.

Ethel

That is our situation exactly, but because some of our people are scattered, we are receiving the "awe and shock" treatment. The scattered also prevents meeting very often. As you say, would the "field salesmen" sign a contract without their boss knowing? No, but the boss doesn't always pass on the info or leaves and it's Burmuda Triangle Time. That is why I would like some type of guideline (policy, procedure,whatever) that would alleviate this problem.

Down_the_Middle

Ethel:
My suggestion would be to see how the CEO wants to handle it. Couple of options: 1) only officers of the corp/organization can duly sign contractual committments; 2) only those authorized by the CEO; or 3) must be a member of the management team. Without knowing the size and nature of your organization, it's hard to make a valid suggestion, but your CEO's the one with the right answer for your company.

Ethel

Yes, you are right. However, it is the CEO who has asked me for assistance in this matter. We are not a really big company, but have mfg. facility and multiple outside personnel (sales) who must be able to sign contracts with our customers. These contracts can encompass obligating company to a set price, a set formula, set delivery obligations, etc. Am hoping to draw on the vast and diversified knowledge in this forum group. I'm at a loss because in my former lives at other companies, there was a set list of positions (CEO, EVP, CFO, etc.) who could sign contracts. Help!

ritaanz

Why not start by asking the "scattered" personnel to forward you a copy of all the contracts in effect? Advise them of your dilemma and what you are trying to achieve. From your post, it sounds like you want to get a handle on the number and kinds of contracts out there rather than curtail all contract signing.

System

[font size="1" color="#FF0000"]LAST EDITED ON 04-30-03 AT 08:57AM (CST)[/font][p]Most companies have one person who reviews the contracts for accuracy and in your case and with the type work your company does, seems like that would be the CFO. I would probably suggest that two signature lines be on the contract for your company - the CFO and the CEO. Do you have any policies in place that address delegation of responsibility? All contracts, ideally, should be signed at the corporate level. I have a generic vendor contract if you would like to review. Please email me at [email]cwinebarger@charter.net[/email] if you are interested. Don't you just love it when management delegates? ; ) After thought - a contract log should be controlled at the corporate level with name of contract, who with, date initiated and termination date if applicable. I have that too, if you would like.