4.102
Contractor’s signature
FAR 4.102 requires contracts to be signed by authorized individuals based on the contractor’s legal structure, with documentation to prove authority when necessary.
Overview
FAR 4.102 outlines the requirements for proper execution of contracts by contractors, specifying who must sign contracts based on the contractor’s legal structure (individual, partnership, corporation, joint venture, or agent). The regulation ensures that only authorized individuals bind the contractor to the agreement, protecting both the government and the contractor from unauthorized commitments.
Key Rules
- Individuals
- Contracts with individuals must be signed by the individual, and if doing business as a firm, the signature must include the individual’s name and the firm’s name.
- Partnerships
- Contracts must be signed in the partnership name, and the contracting officer must verify the authority of the signatory and obtain a list of all partners.
- Corporations
- Contracts must be signed in the corporate name, followed by the signature and title of the authorized person; the contracting officer must confirm the signer’s authority.
- Joint Venturers
- Each participant must sign according to their entity type, and the contracting officer must verify corporate authorization for participation.
- Agents
- If an agent signs, their authority to bind the principal must be proven to the contracting officer’s satisfaction.
Responsibilities
- Contracting Officers: Must verify the authority of signatories and obtain necessary documentation for partnerships, corporations, joint ventures, and agents.
- Contractors: Must ensure contracts are signed by authorized individuals and provide evidence of authority when required.
- Agencies: Oversee compliance and maintain documentation verifying signatory authority.
Practical Implications
- Ensures contracts are legally binding and enforceable.
- Prevents unauthorized commitments by requiring proof of authority.
- Common pitfalls include missing documentation or improper signatories, which can delay contract execution or render contracts unenforceable.