Which statement about proof of authority requirements is true?

Which statement about proof of authority requirements is true?

• A. Proof of authority is optional.
• B. Proof of authority is not needed if the contract is simple.
• C. If authority is uncertain, the contract should be signed anyway.
• D. A contract should not be signed until proof of authority is presented.

Answer: (D)

Confirming that the person who signs a contract has actual authority to bind the party is essential. Proof of authority shows that the signer is empowered by the organization or principal to commit it to the terms, so the agreement will be enforceable and binding. Without this confirmation, the contract risks being unenforceable or opening the door to disputes over who could legally sign and who bears liability for any commitments. That’s why the just-right approach is to require proof of authority before signing. Authority matters regardless of how simple the contract appears or how trustworthy the signer seems; the legal effect hinges on authorized power, not on impression. If authority is uncertain, do not sign until you obtain clear proof—such as an official authorization letter, a corporate resolution, or a valid power of attorney. If there isn't proper authority, the principal may not be bound, and the signer could face personal exposure or the agreement could be invalid. In short, sign only after there is verified proof of authority to bind the party.

Confirming that the person who signs a contract has actual authority to bind the party is essential. Proof of authority shows that the signer is empowered by the organization or principal to commit it to the terms, so the agreement will be enforceable and binding. Without this confirmation, the contract risks being unenforceable or opening the door to disputes over who could legally sign and who bears liability for any commitments.

That’s why the just-right approach is to require proof of authority before signing. Authority matters regardless of how simple the contract appears or how trustworthy the signer seems; the legal effect hinges on authorized power, not on impression. If authority is uncertain, do not sign until you obtain clear proof—such as an official authorization letter, a corporate resolution, or a valid power of attorney. If there isn't proper authority, the principal may not be bound, and the signer could face personal exposure or the agreement could be invalid.

In short, sign only after there is verified proof of authority to bind the party.