Loss Prevention Loss Prevention Alerts

LPA 31 – Authority to Execute Contract

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Published in January 2005

Whilst sometimes AGS members contract with individuals, most often they will be entering into contracts with artificial entities, such as partnerships, companies and local authorities. Such artificial entities can only negotiate via people(directors, officers or employees) who have authority to negotiate on behalf of the entity and to bind it to a contractual relationship. This LPA describes how an AGS member can be sure that the person he/she is dealing with has authority to enter into such a contract.