When does the University have to sign a contract using its official seal?
The answer to this question involves 2 considerations, namely:
- technical legal requirements
- even if the law doesn’t require the University to sign (or
execute) a document under seal, what does the other party require
The University, as an incorporated body, is the same as any person and it can
enter into (or sign) contracts in exactly the same way. Signing (or executing) a contract or other legal document under seal is the
most formal type of signature that a person can make.
You might be surprised
to know that there are very few types of contracts that the law actually
requires the University to sign using its official seal. Some examples include
deeds, guarantees and contracts transferring an interest in land.
Standard contracts to buy goods and/or services do not have to be signed using
the official seal to be legally valid.
Of course, the fact that the law may not require the University to sign under
seal is only part of the consideration. Many third parties will insist on the
University using its official seal to remove any possible argument about whether
or not the University is bound by the contract or whatever type of legal document
it is.
Unless either (1) a contract is of a type that the law requires to be signed
under seal; or (2) the third party insists that the University sign using its
official seal, any person who has authority to do so, can sign a contract or
other legal document on the University’s behalf or otherwise commit the
University to that contract and/or other legally binding obligation. This includes,
employees, officers, agents and consultants.
Related Topics:
|