Writing down the full name of your business in a contract can be tedious and waste valuable space. You can refer to your company as a DBA throughout the contract, but you should note this in the first paragraph by writing “hereinafter referred to as John`s Automotive”. You don`t even need to use your company name. You may just find that you call it “the company,” “Signatory A,” or something similar. John went to court, arguing that he could not be sued for founding Carpet Glow as a limited liability company to protect his personal property. The court ruled against him because of the way he had signed the contract with Acme. A very simple change in the way the signing section of the Acme Treaty was written would have saved John from this threat to his personal property. If you want to avoid this error, read on. Simply being careless can put your assets at risk. When signing a business contract, use the full legal name of your company. If you have registered, your business is a separate entity and must be treated as such in the contract.

Your official name as an individual should not be on the list. Make sure that when another company presents you with a contract, all legal names are spelled correctly. Referring to a company with its permanent contract or trade name in contracts endangers its representatives. Whenever an agent signs a contract for a company, he must ensure that the contract identifies the company by using the name exactly as it appears on its founding documents. To clearly and completely disclose the agency relationship, the agent must sign all contracts as follows: Company names can be long and complicated, especially if several companies in your state are similar to yours. Therefore, you can adopt a name “doing business as” or DBA. This shortened name makes it easier for customers to relate to your business and is completely legal. However, if you sign contracts, you must do so as the full name of your company. Therefore, if an agent wants to avoid any liability for his company`s contracts, he must fully and accurately disclose the identity of the company at the time of signing the contract. Since Texas law never requires an agency relationship, the agent bears the burden of proof that he did. Signing with the company`s DBA is not enough for two reasons.

Legal names can be beneficial owners, such as general partners of a partnership or agents authorized to sign contracts on behalf of partners. In the case of a sole proprietorship, the entrepreneurs of a sole proprietorship must sign their legal name to make the contract enforceable. However, a corporation exists separately from its owners or shareholders. Once the articles of association or articles of association are registered with the competent state authority, the company may enter into contracts with third parties. Persons authorized to sign contracts on behalf of a company can sign the agreement using the legal name of the company. Other business structures, including limited partnerships and limited liability companies, must also be registered with the Secretary of State. The legal names of these companies are the names registered with the Secretary of State. Registered businesses must act as separate entities from the people who run them, and proof of this is the consistent use of the company`s actual legal name. This is a simple step that can save controversy in a legal dispute. Determine the correct legal name of your company and use it consistently in contracts.

Is it enough for the above agreement to state “Miff Co.” if the legal name is Miff Company Inc. of Boston”? It is always best to use the exact official legal name of the company as indicated on its birth certificate. Otherwise, it creates the possibility of litigation, and the whole point of a contract is to avoid disputes and create rules to settle controversies. Always use the correct legal name of your company in contracts. Any contract must present the parties to the contract – including your company and the party with whom you sign the agreement – in the first paragraphs of the contract. For example, you might write, “Milton`s Automotive Parts LLC is a company registered in the State of Florida, hereinafter referred to as Milton`s.” How a business name can be good as gold Well over half of the contracts I review have the name of one of the wrong parties. I don`t mean misspelled, although this is a basic starting point, but legally wrong. The names of the parties are the most basic part of the contract and must be: the 2013 case refers to a contract between Liberty Mercian Ltd. and the defunct Cuddy Civil Engineering Ltd. The former intended to enter into a contract with Cuddy Demolition and Dismantling.

The court took into account the context of the contract and documents such as warranty, invoices, payments and letters of intent. These documents contained both the correct and false name and a third name, Cuddy Group. Due to the significant discrepancies, the court concluded that the contract was not valid in written form. Whenever you use the name of your company or the name of a company with which you contract, it must be the exact name that appears on the company`s birth certificate. For example, suppose Miff Company was founded as “Miff Company Inc. of Boston.” That would be his official name. If you don`t make your business a party, the hotel can and probably will sue you personally for unpaid rooms. If you were to argue that you really wanted to put the contract on behalf of your company, you would lose because there is no evidence to do so. By including Joan Miff in the list of parties to the Agreement, the Agreement may be enforceable against Joan Miff`s personal assets as well as the assets of Miff Company, Moff Company and Company. Do you think Peter Pink has a long career in purchasing at Miff Company? Design your contracts to avoid controversy – they need to be very clear about who agreed to what. If Joan Miff does not intend to be personally responsible for this Agreement, her name should not appear on it. Another issue to keep in mind is that the person who negotiates and signs contracts for a company or LLC may end up being held personally liable.

This is generally not a legal sanction, but is based on the agency`s well-established legal principle that in order for a person to do business on behalf of another person to avoid personal liability, that person (the agent) must disclose the agency`s fact and the identity of the principal (the company or LLC). Failure to correctly provide the legal names of the parties to the contract can lead to confusion as to who is required by the contract. Companies that use a trade name or dba, which means “to do business like”, sometimes abuse their trade name when entering into a contract. The signature block should start with who accepts the treaty. If it`s boston-based Miff Company, the signature block should start like this. If it is a person, the signature block begins with that person`s name.