How to Sign a Contract

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Purpose and Scope

This policy establishes the guidelines and procedures for the proper execution of contracts by {{company_name}}. It applies to all employees, consultants, and representatives authorized to negotiate, review, and sign contracts on behalf of the company.

Pre-Signing Review

Before signing any contract, ensure that:

a. The contract has been thoroughly reviewed by the relevant department (e.g., Legal, Finance, Operations).

b. All terms and conditions are clearly understood and acceptable to {{company_name}}.

c. The contract aligns with the company's strategic objectives and policies.

d. All necessary approvals have been obtained from management.

e. Any financial commitments or obligations fall within approved budgets.

Authority to Sign

Only individuals with designated signing authority, as outlined in the company's Delegation of Authority Matrix, are permitted to execute contracts on behalf of {{company_name}}.

The signatory must ensure they have the appropriate level of authority for the specific contract type and value.

Contract Formalities

When signing a contract, ensure the following:

a. The contract is dated on the day of signing: {{date}}.

b. The full legal names of all parties are correctly stated.

c. All pages of the contract are initialed or signed, if required by the counterparty or internal policy.

d. Any amendments, changes, or annexures are properly incorporated and initialed/signed by all parties.

e. The contract is signed in the presence of a witness, if legally required or deemed prudent for the specific contract (e.g., deeds).

f. The signatory's full name and designation are clearly printed below their signature.

Electronic Signatures

Electronic signatures are permissible where legally recognised in the relevant jurisdiction (e.g., South Africa's Electronic Communications and Transactions Act, 25 of 2002).

Ensure that the electronic signature platform used provides adequate security, authentication, and an audit trail to verify the signatory's identity and intent.

Post-Signing Procedures

Immediately after signing:

a. Distribute fully executed copies to all parties.

b. File the original executed contract securely in the company's contract management system (physical or digital).

c. Ensure all relevant departments are aware of new contractual obligations or rights.

d. Schedule key dates (e.g., renewal dates, payment dates, delivery milestones) in relevant calendars or systems.

Retention of Contracts

All executed contracts must be retained for the period specified in {{company_name}}'s document retention policy or as required by applicable laws and regulations, whichever is longer.

Governing Law

All contracts entered into by {{company_name}} shall, where possible and appropriate, be governed by the laws of {{governing_jurisdiction}}.

Signature Block

_____________________________

Signature of Authorised Signatory

Name: {{signatory_name}}

Title: {{signatory_title}}

Date: {{date}}