When you’re a software developer, even the best app development contract in the world can have major problems if the wrong people sign the agreement…or they sign the contract in the wrong capacity.
Lack of Signing Authority
If a company wants to weasel out of your software development agreement, one way to do this is to claim the person who signed the contract on the company’s behalf lacked signing authority to bind the business to the contract.
This often occurs where one of the company’s owners opposed the development project in the first place. Or there is buyer’s remorse because of circumstances that may be beyond your control. For example, there’s a negative financial event at the company and a sudden need to cut expenses and retrench.
In either scenario, rather than being honest and renegotiating the deal with you, the excuses start to fly as to why the work won’t proceed, including an alleged lack of signing authority.
Signatures In Wrong Capacity
If your software development contract doesn’t have the correct signature lines, it can become unclear exactly who is responsible.
How is this possible?
Signature lines are improperly set up so that it appears that one or both parties are signing as individuals rather than on behalf of their respective businesses. In such cases, you may not have an agreement with the company itself but just one of its employees as an individual.