Contract Signatory Requirements addresses the person signing the contract having authority to sign and thereby bind the entity entering the contract. Some Clients require a letter from the Corporate Secretary, bearing the corporate seal, stating that the person signing the contract has approval to bind the corporation for contracts up to a certain amount. This is fairly common when contracting with public agencies.
Failure to verify the authority of the person attempting to sign a contract may result in the Client refusing to pay for the services already rendered alleging that the person that signed the contract did not have the authority to do so.