contract with self

Hello,

No it is not considered as a contract with yourself as the signature on the policy shall be an authorised signature and hence the contract shall be between you as a customer on one side and the company on the other sid.e

In a general contract, there have to be atleast two parties-the promisor and the promisee. One person cannot be a promisor as well as promisee.It has no meaning.

Coming to a Company, the company,in itself, is a legal person. The members or founders or owners are distinct from the company. Now since there are two distinct personalities are involved, a contract is possible.

However, the contract so entered should be reasonable, within the general rules and frameworks of the company and it should not result in undue advantage to the individual. Otherwise,it can be challenged in the court of law by other members/share-holders/stake-holders of the company.

Dear Jayaprakash/Sanjay,

Thank you for the replys.

They were really helpful.

Dear Sanjay,

I agree that a company is a legal entity in itself and is separate from the identity of its member. However, should the authorized signatory not disclose that the other party of the contract is himself or his immediate relatives? As you rightly pointed out that if there is any undue advantage then it can be challenged in the court of law.

taking my example forward, say if I am an authorized signatory of an insurance company and all the policies so issued bare my signatures and then if I enter into a contract of taking insurance from my own company would it not mean that I am the proposer and the approver myself. There can be a possibility that I an alleged of being partial either in providing the cover or at the time of settling the claim, in any, that arises in the policy?

Regards

Alpesh Lapsiwala

Dear Mr. Alpesh,

Are you also a Director in the company?

What type of company is it? If it is a private limited company, there has to be atleast two Directors or Members. In that case, the other Director/Directors can approve your proposal and you can then sign as authorised signatory.

All these details about exact nature of relationship you have with your company, the nature of your company etc., is required.

Hello,

See the basic thing is you and your company are the parties and the policy you enter into with your company shall be ruled by by-laws of your company and the policy issued by you on behalf of your company shall have to comply with all such rules and if it does not then the contract itself shall be void. And what makes you think you alone will remain as authorised signatory forever? Tomorrow the person may change, so logically the contract is between you and your company. And if we run together with your assumption, most of your employees would have taken cover from your company and what if all would have defrauded, though you are the authorised signatory? Hence the terms and conditions framed by the company shall be inaccordance with the ordinance passed by the board of directors, not you alone. And if any contract is found against such ordinace, the contract shall remain void.

Regards,