Legal Definitions - signatory

A signatory is an individual, organization, or entity that formally signs a document, thereby indicating their agreement to its terms and becoming bound by its provisions. This act of signing can be done directly by the party themselves or by an authorized representative acting on their behalf.

• Example 1: Residential Lease Agreement

  When a person decides to rent an apartment, they will typically sign a lease agreement with the landlord or property management company. By signing this document, the individual becomes a signatory to the lease.

  Explanation: The act of signing the lease signifies the individual's acceptance of all the terms and conditions outlined in the document, such as the monthly rent, duration of the lease, and rules for living in the property. They are now legally bound by these terms.

• Example 2: Business Partnership Contract

  Two technology companies, "Innovate Solutions Inc." and "Future Tech Corp.," decide to collaborate on a new software project. Their respective CEOs, acting as authorized representatives for their companies, sign a detailed partnership contract outlining their roles, responsibilities, and profit-sharing arrangements.

  Explanation: Both "Innovate Solutions Inc." and "Future Tech Corp." become signatories to the partnership contract. Even though their CEOs physically signed the document, the companies themselves are the parties bound by the agreement's terms, committing them to the joint venture.

• Example 3: Bank Loan Agreement

  A small business owner applies for a loan from a bank to expand their operations. After the loan is approved, the owner signs a comprehensive loan agreement detailing the principal amount, interest rate, repayment schedule, and collateral.

  Explanation: The business owner, by signing the loan agreement, becomes a signatory. This action legally obligates their business to repay the borrowed funds according to the stipulated terms and conditions, and it grants the bank certain rights in case of default.