Commercial Agreements
VIJAY K. TEOTIA
(Querist) 08 September 2010
This query is : Resolved
Who should sign the day to day commercial agreements/MOUs on behalf of the company. Is it necessary to have a board resolution in favour of the person signing such document. if a senior person signs such agreement without having board resolution, is there any illegality/infirmity in case any litigation arises.
Heaven 2011
(Expert) 09 September 2010
Of course there should be a board resolution or a power of attorney authorising the concerned person to sign the agreement.
Regards,
pawan sharma
(Expert) 14 September 2010
i. Board resolution is necessary.
ii.yes, it is beyond the power so illegal.
Sri Vijayan.A
(Expert) 19 September 2010
If the senior person signs agreement without any power, it is illegal.
But if he made the other party to believe that he has the power, by virtue of his position in the organisation as senior person, the other party has the right to invoke the provisions of spe.performance act.
The illegality of pwer and all becomes the internal matter of the organisation which has to initiate disciplinary proceedings against its own employee and recover for any damages
