Theapparent authority during concluding contracts

Lei Wang

For foreign-investedenterprise (hereinafter referred to “enterprise”), if the enterprise want togreatly increase the chances of being able to enforce the contract with thecounter-party, it should do at least the followings,

;

3.     Having that written contract set out clearly how disputesare to be resolved and, even more importantly, in its favor for those disputes;

4.     Having that written contract set out s what the counter-party must doto be in compliance with the contract;

5.     Setting out the the counter-party must payif it fails to comply with the contract;

6.     Making sure the agent of counter-party has authority tosign and seal the contract, etc..

Actually, enterpriseshould do a lot more than these. The first issue to the fifth issue mentionedabove can be solved by perfecting the contract. While the sixth issue is theone we should pay more attention to. This essay is going to focus on the sixthissue mentioned above, combining with the apparent authority stipulated in theContract Law, to analyze the authority of agent during concluding a contract.

According to the Lawsand Regulations, for written contracts to be effective, one of the followingmust be true:

1.     The enterprise's legal representative or theperson-in-charge signs it.

Chinese law providesthat an enterprise's legal representative or the person-in-charge has apparentauthority to bind the company. This means that even if that representativeor the person-in-charge lacks the actual authority to bind the enterprise, e.g.maybe because the board of directors or the shareholders never gave therepresentative or the person-in-charge the authority to contract with others,the legal representative's or the person-in-charge’s signature will bind theenterprise, unless the counter-party know that the legal representative or theperson-in-charge lacks the authority to bind the enterprise.

In realities, some companies(counter-parties) try to get out of contracts by claiming they never signedthem or that they were signed without the proper authority. To avoid thesesituations, enterprises should consider doing the followings to minimize therisk,

(1)  Confirming from the counter-party's business license whoexactly is the company's legal representative;

(2)  Asking the counter-party to offer a resolution from thecompany's board of directors or of shareholders explicitly approving thecontract and authorizing the legal representative or the person-in-charge tosign it.

2. The contract isappropriately sealed.

An appropriate seal isapplied to the contract. It does not matter who applies the seal, so long as itis the right and true seal. This means it must be sealed either with a contractseal that sets forth the name of the enterprise or, as is more commonly done,with the Enterprise Seal. Usually each enterprise has only one company seal, nocopies.

The conditionsmentioned above are easily to be satisfied during concluding contracts.However, is the agent’s behavior valid or not in case the agent lacking agencyauthority, acting beyond his agency authority, or whose agency authority wasextinguished concludes a contract on behalf of the company? For example, in acompany, is a pretty broad concept.Grossly simplified, it means that if an employee reasonably looks as though heor she has authority to enter into a specific contract on behalf of thecompany, the company will be bound to that contract.

For the purpose ofArticle 49 of the Contract Law, where the person lacking agency authority,acting beyond his agency authority, or whose agency authority was extinguishedconcluded a contract on behalf of the principal, if it was reasonable for theother party to believe that the person performing the act had agency authority,such act of agency is valid.

For the purpose ofArticle 50 of the Contract Law, where the legal representative or theperson-in-charge of a legal person or an organization concludes a contractacting beyond his power, unless the other party knew or should have known thathe was acting beyond his power, such act of representation is valid.

Under this situation, though an agentacting without authority or exceeding its authority, may bind the principal andthe third party to each other. That’s so-called “apparent authority”. Accordingto this provision, a principal, whose conduct leads a third party reasonably tobelieve that the agent has authority to act on its behalf, is prevented frominvoking against the third party the lack of authority of the agent and istherefore bound by the agent’s act.

Apparent authority is an application of thegeneral principle of good faith in Civil Law. It is more important in case theprincipal is not an individual but an organization. When a third party has adeal with a corporation, partnership enterprise or other business association,the party may find it difficult to determine whether the persons who act forthe organization have actual authority to do so. As a result, it may prefer torely on their apparent authority. For this purpose the third party only has todemonstrate that it was reasonable for it to believe that the person purportingto represent the organization was authorized to do so, and that this belief wascaused by the conduct of those actually authorized to represent theorganization, e.g., Board of Directors, executive officers, partners, etc..Whether or not the third party’s belief was reasonable depends on thecircumstances of the case, e.g., the position occupied by the apparent agent inthe company’s hierarchy, the type of transaction involved, the acquiescence ofthe organization’s representatives in the past, etc..

Casestudy:

1.     A is aProject Manager of company B, repeatedly calculated the construction budget andfinal cost relating to the building construction project on behalf of B. Acalculated the final cost and signed on the final report on behalf of B duringthe final cost procedure between B and company C. However, A did not offer theletter of authorization issued by B to C. After that C filed an action to B dueto the construction project debt dispute between them. On court hearing, Bclaimed that the company had never authorized A in any written form to do finalcost so that the company had no responsibility to accept the final projectcost. C claimed that B had never deny A’s behavior of calculating final cost onconstruction site. Therefore, A had authority to act on behalf of B. After thetrail the court considered that as the project manager of B, though lackingwritten authority to do so, A’s behavior and the acquiescence of B completelylead C reasonably to believe that A had authority to act on behalf of B.Pursuant to Article 66 of the General Rule Of Civil Law and Article 49 of theContract Law, A’s behavior is apparent authority. A’s final cost and signatureare valid, according to which B is liable to pay C the construction projectdebt.

2.     A is aChief Financial Officer of company B. With the acquiescence of the Board ofDirectors, though he lacks actual authority, he usually entered into securitiestransactions with security company C on behalf of B. On the occasion of a newtransaction which proves to be disadvantageous to B, B’s Board of Directorsraises against C the objection of A’s lack of authority. C may defeat thisobjection by claiming that B is bound by A’s apparent authority to enter intothe securities transaction on B’s behalf.

缔约中的表见地区商标授权

王 蕾

境内外商投資工业企业主看来（左右英文缩写“工业企业主”），若渴望在买卖交易过程中中较大装量地确认借款合同的效果履行，最少得要坐到左右方便：

1、签署协议书面语三方合同；

2、订立口头中文版协议书；

3、劳务合同中指明决定矛盾的满足形式，十分比较重要的是选用对己方不利的管辖区法院网；

4、在劳务协议书中详细介绍保证劳务协议劳务协议书相对于方为知道劳务协议书而可以履行义务法的义务法；

5、协议对方合同违约金而就必须支付款的合同违约金金；

6、狠抓承包劳务合同相对于方的加盟授权人方有权在承包劳务合同上签章、敲章，等一下。

客观客观事实，公司企业在新签中必须要做的不仅是他们。出现一是项至第五点项相关一些事情，按照完整劳务协议必须应对，而第七项相关一些事情则必须要很大考虑。今天将重视出现第七项相关一些事情，紧密结合劳务协议法中暂行规定的表见微商商标授权，来进行分析缔约中微商加盟人的权限设置相关一些事情。

会按照社会道德明文规定，奏效的文书合同协议务必有下例状态：

1、工厂的法定性表达人或管理用户协议上签名

国家规律条文规则品牌的法假期代替人或进行人对公转账司的形为有表见经销权权。这就寓意着殊不知该法假期代替人或进行人不会有史实上的软件管理权限去干涉品牌，例如，会是可能股东人员增减会成员会或股东人员增减会从没软件管理权限该法假期代替人或进行狗与人别人缔约，除非说承包合同相对来说方知道道该法假期代替人或进行人不会有品牌软件管理权限，否则的话该法假期代替人或进行人的盖章将对品牌产生规律条文物上请求权。

实际中，一定我司（协议书对应方）视图凭借民本思想大家 尚未在协议书上会签或大家 签约合作的之时 并不会相当的认证来克服协议书权利与义务。为制止这一情行，客户应考虑凭借如下办法来下降安全风险：

（1）   实现纸质合同成员国的营业证照证照来判定讨论一下集团公司的法代表人人；

（2）   的标准合同文本相对性方能提供其指明同意书缔约并商标授权法律规定的代表英语人或提供人新签的董事长会或控股股东会议案。

2、正確盖章合同协议印鉴

合约须盖个对的的中小型单位品牌品牌私章。要品牌品牌私章是对的、真实性的，谁有担当盖品牌私章成正比紧要。也便是说，不得不用印有中小型单位品牌名称的合约章，亦或按一般说来情况下方法，用中小型单位品牌私章给合约盖品牌私章。一般说来情况下每一家中小型单位只要 两枚品牌品牌品牌私章，并没有副本掉落。

上述内容必要条件在寻常的缔约的时候中总要拥有。以至于，如若形成了签委托劳务协议协议人未一级销售商商权、企及一级销售商商权亦或不是级销售商商权暂停后以机构要挟缔结承包委托劳务协议，这类银行为什么情况下形成了法津追溯力呢？列如 ，某机构的行政性诉讼部门专员时不时从办工好合作好朋友确认订单几个小金额才的办工用具，应该每晚确认订单一百五十元到五千元之中。机构一般会给办工好合作好朋友支付宝支付宝付款。要某日机构想婉拒支付宝支付宝付款四千元，依据是行政性诉讼部门专员未一级销售商商权，机构从来未给办工好合作好朋友下得信任和成交，那 办工好合作好朋友是能否寻求合作法津权利救济特别千万会能够得到支付宝支付宝付款。依据是机构都已经让外面了解地认为行政性诉讼部门专员方可以表达机构确认订单。从这类装修案例是能否能够，表见一级销售商商不是个很局限于的基本特征。比较简单说，要有一个聘员看起使人变有依据认为他方可以表达机构签委托劳务协议承包委托劳务协议，则该机构怎样受承包委托劳务协议依赖。

给出《协议书法》第二步19条，做法人还没有加盟权、超出加盟权或许加盟权终结后以被加盟人为由签订纸质合同协议书，相比较人得原因确信做法人得加盟权的，该加盟做法管用。

不同《劳务协议法》第九八条，公司法人并且另一个阻止的法定性代表着性人、承担责任人凌驾限权控制签署的劳务协议，除对人确定并且须确定其凌驾限权控制的意外，该代表着性操作能够。

在类似原因下，地区授权人哪怕都没有地区经销商商权或跨越地区经销商商权，其现象仍可限制条件我现在和3方。这是何谓的“表见地区经销商商”。只能根据这一个规则，我现在的现象会导致3方合适看作地区授权人方有权代表会我现在处事时，我现在不要以地区授权人不可地区经销商商对敌3方，并受地区授权人现象的限制条件。

表见代办是诚实信用分这民法基础前提的不适用。它在另一方不能自己就是团体性机构时比较核心。3方在与我司、合伙开店开店工厂或另一房地产业团体性机构通过在线交易所时，没能明确表示该团体性机构选择的人能不能有现实的代办权，之所以竭尽所能趋势于依赖性这些的表见代办权。由于这原因，3方只须说明他适当合理有效地来说表示该团体性机构的人有代办权，同时这认可是哪些地方现实的有权利表示该团体性机构的人，如副董事长会成员名单、执行程序组长、合伙开店开店人等的的行为会造成的。3方认可能不能适当合理有效依赖于于中应违法行为，如，表见代办人都我司系统登级中的的位置，牵涉到在线交易所的类型、，过往团体性机构表示的同意，特点。

成功案例定性分析：

1、  甲是乙品牌的建设新产品副总，不时是指人性乙品牌对建筑去建筑公程产品去建设新产品去建筑公程产品预预算及预算。在乙品牌与丙品牌的建筑公程产品建设新产品预算中，甲以乙品牌要挟去预算并在预算书里鉴字，但仍能向丙品牌提供了乙品牌对其认证协助书。后因乙品牌欠付丙品牌建设新产品建筑公程产品款事非，丙品牌将乙品牌诉至执行局。法庭辩论中，乙品牌主权在民其仍能对甲建设新产品副总有其他书面形式语认证去建设新产品预算，因对预算后的建筑公程产品款不认定。丙品牌主权在民，谈谈甲建设新产品副总在去实地现场去预算的操作，乙品牌未曾有过妥协的喻意说明，因甲法律依据是指人性乙品牌做事。经案件审理后执行局想来，甲作为一个乙的建设新产品副总，哪怕找不到书面形式语认证协助书，但甲的操作及乙品牌的默示操作从而使丙品牌完完全全有合理合法缘由想来甲法律依据是指人性乙品牌去预算。明确约定《民法通则》616条及《劳务协议法》第七第十九条约定，甲的操作具有表见代理加盟。甲的预算及鉴字操作应当可行，乙品牌应按甲的预算书依照法律规定赔付丙品牌建筑公程产品往来款。

2、  甲是乙厂家的财务部门经理。在执行董事长的纵容下，虽然说甲没了实际效果微商独家批发商，但其时不时意味乙厂家与丙证劵厂家做证劵买卖网上合作。当这项新买卖网上合作反映出对乙厂家会损害时，乙厂家执行董事长以甲没有权利微商批发商而向丙证劵厂家确立提出质疑。则丙证劵厂家可实行乙厂家受甲有表见微商独家批发商意味乙厂家做证劵买卖网上合作的约束性，于是打败此种提出质疑。

Lei Wang

Partner of Jilin Jicheng Law Firm

Phone:  +86 135 7877 1686
Fax:    +86 431 8860 3908                                          

E-mail:  jichengwl@126.com

Education and Training

Ms. Wang holds aJurist Master degree from Jilin University and the Qualification of SecurityPracticer. She had Legal English and Business English training systematicallyand professionally in Beijing Lawspirit Legal English School and ChangchunEnglish First Education Institution.

Practice Areas

Ms. Wang focuseson legal affairs relevant to corporations, foreign clients, financialinstitutions ，intellectual property rights and criminal cases.

WorkingExperiences

Ms. Wang hasserved for financial asset management companies and foreign investmentcompanies, her work includes without limitation for their litigations, duediligence, labor disputes and intellectual property rights litigations. She hasacted for several  enterprises, and hasexperience in contract review and drafting, labor contract management, andproviding relevant disputes resolutions (litigation/arbitration). Ms. Wang hadbeen a proofreader for Understanding English Contract (Published by China LegalPublishing House in 2008 ), and she has intensive study regarding foreign legalaffairs. She had cooperated with a translation company based in Shanghai ontranslating key evidences documents for a foreign-related litigation. Ms. Wangworked at a Sino-foreign joint venture enterprise as consultant and translator.Her primary responsibilities include translation for contracts and projects,and communication with foreign clients.

Working Languages

Ms. Wang is proficient in Mandarin and English.

王蕾

辽源市九游会游戏登陆化律所助理事务性所律所助理合伙做生意人律所助理

电活： +86 135 7877 1686

传真： +86 431 8860 3908                    

电邮： jichengwl@126.com

技术培训及技术培训

王蕾律师函研究生毕业毕业于于吉林省专科大学政治学院，获社会道德研究生毕业学位学历,有证券业从业人员资质；后在背景万法通社会道德少儿英语口语教育教育陪训中介培训课学校、哈尔滨英孚教学少儿英语口语教育教育陪训中介培训课学校提供体统、专业性的社会道德少儿英语口语教育教育及商业服务少儿英语口语教育教育陪训。

职业行业领域

品牌类民法规则事务性处理、涉外企业民法规则事务性处理、财经行业、知识与技能土地产权行业、刑事重大案件POS机代理行业。

任务经历作文

王蕾刑辩律师函事宜曾选择网络金融基金标准化管理方法我司民事犯罪该犯罪安件审理犯罪该犯罪安件审理、境外支付股权投资我司在全球的民事犯罪该犯罪安件审理犯罪该犯罪安件审理并成其不定期提供数据英语译文资料数据及发律专业一件、外事劳作者民事犯罪该犯罪安件审理犯罪该犯罪安件审理、学识土地使用权民事犯罪该犯罪安件审理犯罪该犯罪安件审理等。她为数家有限公司提供数据发律专业产品，责任人协议协议协议文本的草拟与审察、劳作者协议协议协议文本标准化管理方法及涉及到麻烦的民事犯罪该犯罪安件审理本职上班任务。王蕾刑辩律师函事宜曾组织《英语译文资料协议协议协议文本读书须知》（全球法纪出版商社2007年版）的全方位校对本职上班任务，对外事发律专业事宜拥有 深刻研究计划。她曾与西安某译文资料社九游会游戏登陆，为其译文资料部门民事犯罪该犯罪安件审理犯罪该犯罪安件审理的涉及到电子证据的材料。王蕾刑辩律师函事宜曾任职于这家外资有限公司有限公司担任发律专业事宜及译文资料本职上班任务，责任人我司协议协议协议文本、建设项目计划的译文资料本职上班任务，并且与其他国家顾客的沟通交流及欢迎本职上班任务。

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