Contracts & ExecutionQuestion 889 of 1605
A key reason a contractor should ensure the person signing a contract has authority to bind the property is that:
a.A contract signed by someone lacking authority may not bind the actual owner, jeopardizing payment and lien rights
b.It eliminates the need for a scope of work
c.It converts the job into a public works project
d.It guarantees a higher price
Explanation
A contract is only enforceable against a party who is bound by it, so a contractor should confirm that the signer has authority to bind the true owner (for example, that a tenant or agent actually has such authority). If the signer lacks authority, the contractor may be unable to enforce payment against the real owner and may face complications with lien or bond rights. Verifying signing authority does not raise the price, change the project type, or replace the scope of work.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)