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Series 2 · Identity and consent · 2.3

Signing on behalf of someone else.

Powers of attorney, representation and systems acting for people.

October 20267 min read

A large share of the signatures produced every day do not bind the person who signs, but someone else: a company, a public agency, a client, a minor. The manager signs for the company, the attorney in fact for the principal, the invoicing system for the business that operates it. It is not enough for a signature to be authentic; it must also be shown that the signer was entitled to sign on someone else's behalf.

Identity is not authority

A certificate proves who a person is. It does not prove what that person is allowed to do. María may hold an impeccable certificate and, at the same time, lack the authority to bind the company to a contract of that size. Confusing the two is one of the most frequent mistakes in designing signing processes, and one of the most disputed afterward.

QuestionWhat answers it
Who signed?The signer's identity and credential.
On whose behalf?The represented entity or person, identified unambiguously.
With what authority?Bylaws, powers of attorney, appointments or mandates, with their scope and term.
Within what limits?The type of act, the amount, the term, and whether the signer acts alone or jointly.

The forms of representation

When a machine signs

Not everything that gets signed is signed by a person. Invoices, certificates, attestations and records are issued automatically, thousands a day. That is what entity signatures or organization seals are for: they attribute the document to an organization rather than to an individual. The European eIDAS Regulation calls them “electronic seals” and distinguishes them from signatures, which only a natural person can produce.

The question becomes more interesting when a system acts on behalf of a person: an assistant that accepts terms, a program that negotiates and closes orders. The law already has an answer in principle. The 2005 United Nations Convention on the Use of Electronic Communications in International Contracts provides that a contract shall not be denied validity solely because an automated system was involved without human review of each action. The practical consequence is clear: what the system does is attributed to whoever set it in motion, within the limits they established for it.

Behind every automated signature there must be a person or organization that authorized it, with written limits and a record of every use.
A common case

A director resigns in March. The director's certificate, which states the position, expires in December. In June, the former director signs an agreement on behalf of the company. The signature is technically valid and the certificate says "director," but the authority no longer existed. Only a check of signing authority at the moment of signing, and not merely of the certificate, would have stopped the act.

What to do

Recommended practices
  • Verify authority at every signature, against an up to date source, not only when the credential is issued.
  • Record in the evidence on whose behalf the signature was made and on what basis.
  • State the limits of each delegation: acts, amounts, terms and joint signatures.
  • Revoke authority at the very moment the position changes or the mandate ends.
  • For automated systems, document who authorized them, for what purpose and within what limits.
Key points

Identity says who signs; authority says on whose behalf and how far. Statutory representation, powers of attorney, delegations and automated systems all require the same thing: a verifiable basis at the moment of signing, explicit limits, and a record that makes it possible to reconstruct, years later, why that signature bound someone else.

Sources

  1. Regulation (EU) No 910/2014, eIDAS
  2. United Nations Convention on the Use of Electronic Communications in International Contracts, 2005
  3. UNCITRAL Model Law on Electronic Signatures, 2001

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Trust Notes

Articles for those who decide how an organization signs: principles, practices and criteria that hold up as rules and technologies change.

A publication of Signing Flows, by Interfase.

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