Overview
FAR 4.102 establishes the specific procedures and formatting requirements for signing government contracts based on the contractor's legal entity type. Its primary purpose is to ensure that the individual signing the document has the legal authority to bind the business or individual to the terms of the contract.
Key Rules
- Individuals: Must sign personally. If operating as a "doing business as" (DBA) entity, the signature must be followed by their typed name and the specific phrase: ", an individual doing business as [Firm Name]."
- Partnerships: Contracts must be signed in the partnership name. The Contracting Officer (CO) is required to obtain a list of all partners and verify that the signer has the authority to bind the partnership.
- Corporations: Must be signed in the corporate name, followed by "by" and the signature/title of an authorized representative. The CO must verify this individual's authority to bind the corporation.
- Joint Venturers: Every participant in the joint venture (whether an individual, partnership, or corporation) must sign the contract according to the rules for their specific entity type.
- Agents: If an agent signs on behalf of a principal, they must provide evidence satisfactory to the CO that they possess the authority to bind that principal.
Practical Implications
- This section shifts the burden of due diligence to the Contracting Officer to verify legal authority, preventing the government from entering into unenforceable "unauthorized commitments."
- Contractors must ensure their internal corporate resolutions, partnership agreements, or powers of attorney are up-to-date and ready for submission to satisfy the CO’s verification requirements.