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ARTICLE · 24 JUNE 2013

What Makes A Lease "Enforceable" - What You Need To Know

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Leases are often not given the same attention as other types of contracts with respect to issues of corporate authority and enforceability.

United StatesReal Estate and Construction

Who must sign?
Does whether an entity is in "good standing" really matter?

Leases are often not given the same attention as other types of contracts with respect to issues of corporate authority and enforceability. Proof of authority is often an issue in the context of leases and related documents. What you need to know.

Who Must Sign?

The question of who must sign a lease in order for it to be enforceable is a question of state law and the terms of the tenant entity's governing documents.

The basic rules are as follows:

  • A corporation's bylaws, a limited liability company's operating agreement and a partnership's partnership agreement will typically state the identity and number of the officers that are duly authorized to execute different types of documents for such entity. In such event, the tenant may provide landlord with a copy of the governing document.

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