Signing on behalf of another person

How to be legally secure when signing on behalf of or by proxy

Most of us know the situation: An order, purchase order or contract must be signed. However, the person responsible is on holiday, ill or unable to sign in person or for any other reason.

In such cases, it is possible to sign the order on behalf of the absent person. But what exactly does this mean and what needs to be taken into account?

Who is legally authorised to sign on behalf of another person?

In principle, any person with legal capacity can sign on behalf of another person. It is important that the person concerned is actually authorised to act on behalf of the other person. After all, anyone acting on behalf of a third party bears a great deal of responsibility and, by signing on behalf of the third party, is signalling consent or acknowledgement.

A person is authorised to sign on behalf of another by a written or verbal power of attorney. Without such authorisation, the signature on behalf of the other person is legally ineffective and can have unpleasant consequences.

To avoid possible misunderstandings and conflicts, it is advisable to always document the action “on behalf of” in writing in advance by means of a power of attorney. Clear and transparent communication ensures that everyone involved understands their role and responsibilities.

Furthermore, it is of great importance that the person acting on behalf of another acts in accordance with the interests of the other party. The person acting on behalf of another must adhere to the guidelines and agreements made and may not pursue their own interests.

What is the legally correct way to sign on behalf of another person?

A signature on a contract or other business document has extensive legal consequences. If you are signing on behalf of another person, you must have a corresponding power of attorney and you must also place an additional specification in front of your own name. Be careful: Never sign the name of the person you are representing. That would be forgery and a criminal offence.

What does “on behalf of” mean before a signature?

Signed on behalf of

If someone signs on behalf of someone else, they are only the representative bearer of a message. This type of proxy signature is most frequently used for substitutions when somebody is not present and for correspondence by email.

What is the difference between “on behalf of” and “by proxy”?

From a legal point of view, contrary to popular opinion, signing “on behalf of” and “by proxy” is the same – both are labelled with the abbreviation “p. p.” in front of the name. In most cases, a representative correctly signs with p. p. also means “signed by proxy”.

With the abbreviation “p. p.” in front of the signature, you are not acting “on behalf of”, but “with power of attorney”.

What does “p. p.” mean before a signature?

p. p.: Signed with power of attorney

“Signing with power of attorney” means that the signatory is in possession of a corresponding power of attorney from the company or the client and acts within this framework.

What does “ppa.” mean before a signature?

ppa.: “per procura autoritate”/ On the basis of granted procuration

Authorised signatories of a company use this marking when signing. An authorised signatory is authorised to perform all legal transactions and legal acts on behalf of the company.

The type of authorisation determines the scope of action for a signature

Individual power of attorney / special power of attorney
Is it just a specific document or event such as a Christmas party? The best way to do this is to use an individual power of attorney for a specific purpose.
Generic power of attorney / limited power of attorney
Do you regularly have to sign orders on behalf of others or book business trips? A generic or limited authorisation is the best solution for this and is valid until revoked.
Commercial power of attorney / general power of attorney
This is the authorisation to conclude all legal transactions for someone for which representation is permitted (with the exception of marriage, for example, as this is a highly personal legal transaction).

Individual or collective powers of attorney are usually signed with p. p. The decisive factor for the legal effect is not the abbreviation used, but the underlying authorisation.

What common problems can be solved by an electronic signature in this context?

Electronic signatures are popular because they not only streamline and speed up paper processes, but also make you more independent.

E-signature: Sign from anywhere with an electronic signature

With an e-signature, there is no longer any need to issue a power of attorney for business trips or trade fair visits, for example. The solution: You simply sign yourself, independent of time and space. The digital process makes it possible to sign documents and contracts anywhere and at any time in a legally secure manner without the need for a power of attorney.

E-signature: Signature field assigned to the wrong person, perhaps because the email address is not known? Delegate and observe.

In everyday working life, it can happen that you receive a document for signature even though it is intended for a colleague. With a paper document, you might be tempted to sign it yourself for organisational reasons. The problem is much easier to solve digitally thanks to the practical function of delegation. Simply forward the document, monitor the status and have it signed by the right person.

Conclusion

In summary, we can say that signing on behalf of others used to be an important practice in business life to enable efficient action. However, it requires a high degree of responsibility, transparency and trust.

With an electronic signature solution you can also sign while being absent and save yourself the trouble of issuing a power of attorney for representation purposes. With inSign you do not only sign conveniently and electronically, but also in a legally secure and GDPR-compliant manner.

Important: Our articles provide you with an initial overview, but do not constitute legal advice. Please contact a lawyer for such a request.

About the author

Ursula Korotwitschka – Marketing Specialist

Ursula has been working for many years on all aspects of electronic signatures and how smart software can make everyday work easier.

Signing on behalf of another person: What does this mean and what do you need to look out for?