In corporate leasing, which document shows that the signers are authorized to bind the corporation?

In corporate leasing, which document shows that the signers are authorized to bind the corporation?

• A. Certificate of Essential Use
• B. Corporate Resolution
• C. Delivery & Acceptance Certificate
• D. Real Estate Waiver

Answer: (B)

Authorization to bind the corporation in a lease comes from a Corporate Resolution, a board-approved document that names who may sign on behalf of the company and defines the scope of their authority. In leasing, the lessor needs clear proof that the signer has real authority to commit the corporation, and the Corporate Resolution provides that proof by listing the authorized individuals (often by position, such as president or treasurer) and specifying that they can execute lease agreements. This makes the contract binding on the corporation once the signer signs. Other documents don’t establish signatory authority. A Certificate of Essential Use isn’t a standard governance tool for authorizing signers. A Delivery & Acceptance Certificate deals with confirming delivery and acceptance of goods, not who can bind the company to contracts. A Real Estate Waiver concerns waiving certain rights in real estate matters, not the authority to sign leases.

Authorization to bind the corporation in a lease comes from a Corporate Resolution, a board-approved document that names who may sign on behalf of the company and defines the scope of their authority. In leasing, the lessor needs clear proof that the signer has real authority to commit the corporation, and the Corporate Resolution provides that proof by listing the authorized individuals (often by position, such as president or treasurer) and specifying that they can execute lease agreements. This makes the contract binding on the corporation once the signer signs.

Other documents don’t establish signatory authority. A Certificate of Essential Use isn’t a standard governance tool for authorizing signers. A Delivery & Acceptance Certificate deals with confirming delivery and acceptance of goods, not who can bind the company to contracts. A Real Estate Waiver concerns waiving certain rights in real estate matters, not the authority to sign leases.