Sales Contract Signature Authority Document
Introduction
This Sales Contract Signature Authority Document ("Document") outlines the authorization hierarchy and procedures for executing sales contracts at [Your Company Name]. This Document is intended to establish clear lines of accountability and minimize operational risks. It serves as a framework for decision-making processes related to contract signing. Proper adherence to this Document will also assist in reducing contract disputes and legal challenges.
Purpose
The primary purpose of this Document is to clearly define who has the authority to execute sales contracts on behalf of [Your Company Name] and under what conditions. It aims to ensure that the contracting process is consistent, transparent, and aligned with the company's business objectives.
Scope
This Document is applicable to all employees and departments of [Your Company Name] involved in the process of drafting, reviewing, and signing sales contracts. This includes Sales, Legal, and Finance departments. It is imperative for all departments and employees to be familiar with and adhere to the stipulations of this Document.
Definitions
Contract: A legally binding agreement between two or more parties.
Signatory Authority: The power to execute contracts on behalf of the company.
Threshold Value: The maximum monetary value a signatory is authorized to approve.
Authorization Levels
General Sales Contracts
Position | Threshold Value | Special Notes |
Sales Manager | Up to $50,000 | None |
Director of Sales | Up to $200,000 | Requires co-signature for values above $150,000 |
Chief Sales Officer | Up to $500,000 | Requires Board Approval for values above $300,000 |
Special Contracts
For contracts that involve terms beyond standard offerings, such as multi-year engagements, the following table applies:
Position | Threshold Value | Special Notes |
Sales Manager | Up to $20,00 | Requires Legal Review |
Director of Sales | Up to $80,000 | Requires Legal and CFO Review |
Chief Sales Officer | Up to $250,000 | Requires Board and Legal Review |
Delegation of Authority
Signatories may delegate their authority only under special circumstances and must do so in writing. Delegated authority should not exceed the threshold value of the original signatory. The written delegation must be stored in a secure and accessible location for auditing purposes. Delegated authority is temporary and should not be considered a permanent arrangement.
Process Flow
Initial Review: Sales Manager reviews the contract to ensure it aligns with standard terms.
Second Review: Director of Sales checks for alignment with business objectives.
Final Approval: Chief Sales Officer gives final approval if the contract is above the threshold of the Director of Sales.
The steps in this process flow are designed to provide multiple checks and balances. They ensure that the contract meets both the legal requirements and the strategic aims of the company.
Amendment Procedure
Amendments to this Document must be approved by the Board and communicated to all relevant parties. The document will be reviewed annually to ensure its effectiveness. Each amendment must also be documented in the Revision Log for historical tracking and compliance monitoring. A complete review of the Document will be initiated if there are multiple amendments within a single fiscal year.
Compliance and Violations
Failure to adhere to this Document may result in disciplinary action, up to and including termination. Compliance with this Document is not optional and is considered a part of the standard professional conduct expected from all employees. Regular audits will be conducted to ensure compliance.
Approvals
(signature)
[Your Name]
[Your Title]
[Date]
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