Who can sign, and what happens when the wrong person does.
Esshaki Legal Media TeamCurrent as of September 2025
Contracts with public bodies are enforceable only if made by someone with
authority, and the rules are stricter than in private dealings.
Actual authority only. Apparent authority generally does not bind a public
body. A person dealing with a public official is charged with knowledge of the
limits on that official’s authority, which is a rule that surprises contractors
regularly.
Sources of authority. Statute, charter, ordinance, and a resolution of the
governing body. Delegations must themselves be authorized.
Consequences of an unauthorized contract. Frequently void rather than
voidable, with no recovery even in restitution in many states, on the reasoning
that permitting quantum meruit would defeat the protective purpose of the
requirements.
Ratification. A public body may ratify an unauthorized act it could have
authorized, by formal action, provided the original defect was not one the body
could not have cured — such as a failure to comply with mandatory bidding.
Practical protection for contractors. Obtain a certified copy of the
authorizing resolution before performing, confirm the appropriation, and never
proceed on a verbal instruction to perform additional work.
Practical protection for public bodies. A signature authority policy, a
requirement that contracts above a threshold be reviewed, and training for
department heads.