The phrases “signed” and “executed” as they relate to legal documents are sometimes used interchangeably. But there is a slight distinction between the two. It’s vital to comprehend this distinction, especially when it comes to legal agreements and contracts. Signed as opposed to executed Simply placing your signature on a document constitutes signing it. It serves as a sign that you have read the document’s terms and conditions and accept them. On the other hand, when a document is executed, it indicates that all parties have signed it and it is now enforceable. In other words, the signing procedure ends with execution.
A document might occasionally be signed but not actually executed. The document is not legally binding, for instance, if one of the parties decides to cancel the arrangement before it is signed. Signing on Someone Else’s Behalf
You might be asked in some circumstances to sign a document on someone else’s behalf. This can be the case if the signatory has delegated signing authority to you or if they are unable to sign the document themselves.
It is crucial to make this explicit on the document if you are signing on someone else’s behalf. To do this, follow the signature with “by [your name], as [their relationship to you]”. For instance, you could write “by Jane Smith, as authorized representative of XYZ Inc.” if you were signing on behalf of your company. Authorized Account Holder for a Business Account A person who has been granted permission to sign checks and other financial papers on behalf of the business is an authorized signer on a business account. This might be a coworker, a business associate, or even a relative.
Authorized signers often have restricted access to the account and can only carry out specific actions, like signing checks up to a specified amount or depositing checks. They may not have the authority to carry out any significant corporate decisions.
A person who shares ownership and access to an account is said to be a joint account holder. Without further permission, they can sign checks, make deposits and withdrawals, and handle other financial decisions.
On the other hand, an authorized user is someone who is allowed to use an account but does not own it or have authority over it. As an illustration, parents may add their kids as authorized users on their credit card accounts, enabling them to make purchases but preventing them from taking control of the account.
In conclusion, it’s critical to comprehend the distinction between signed and executed when it comes to legal paperwork. It’s crucial to know the restrictions associated with being an authorized signer on a business account as well as to make it clear when you are signing on someone else’s behalf. Understanding these distinctions can assist in ensuring that contracts and agreements are properly completed and enforceable for all parties.