Entering Contracts and Business Transactions

Contracts and business transactions, should always be properly authorized by the Board of Directors and the shareholders where applicable. Corporate officers should assure that they have written authority to execute the contracts that they enter.

All contracts should be signed in the name of the Corporation and not in the name of any individual. Be certain that the party to the contract is the corporation, rather than an individual. Look at the introductory statements in the contract to be sure that the corporation is a party and that the full legal name of the corporation is used.

Additionally, when signing contracts, an officer should clearly designate that he or she is signing in a corporate capacity. Signatures on contracts should read something like this:

XYZ Corporation, Inc., a Michigan corporation

By:____________________

Its: President/Secretary/Treasurer

Our Small Business E-Book contains numerous contracts that are typically entered by Small Businesses in the early stage of their operations. Our self generating system will automatically generate the proper signature and identify the corporation as the proper party to the contract.