Is the contract made by the alleged attorney valid?

On biznesprawnik.pl, our legal blog, a new article on the validity of contracts entered into by alleged attorneys appeared. The article, written by barrister Damian Nowicki, a member of our Team, takes a closer look at an issue that often arises in legal transactions.

Agreements entered into on behalf of companies by proxies are common, but what happens when the proxy takes actions outside the scope of the power of attorney? The article explains that such actions do not always lead to the invalidity of the contract. According to Article 103 of the Civil Code, the validity of a contract depends on its confirmation by the person on whose behalf it was concluded. The purported principal is sanctioned with the sanction of ineffectiveness of the suspended contract, and its validity depends on confirmation by the competent person. The declaration of intent of the alleged principal may be made in various forms, unless the contract requires a specific form. The time limit for confirmation of the contract is not explicitly specified and may be set by the person on whose behalf the contract was concluded. The important point is that a contract confirmed by a competent person has legal effects from the moment it is concluded, and failure to confirm may result in the invalidity or non-existence of the contract, depending on the position.

The article focuses on the important legal aspects of contracts entered into by proxies, providing our readers with valuable information on the subject. Read more: https://biznesprawnik.pl/2023/10/06/czy-umowa-zawarta-przez-rzekomego-pelnomocnika-jest-wazna/.