Why check the authority of a person to conclude a transaction

Probably, each of us at least once in his life concluded a civil contract. As a rule, when concluding a transaction, we immediately begin reading the text of the contract. In many cases this is natural and understandable, but whether such actions are always justified. Sometimes the conclusion of a transaction with a person who is not authorized to commit it may result in large losses.

Market economy is based on the inviolability of property, freedom of contract and inadmissibility of arbitrary interference of anyone in private affairs, etc. It's clear. However, one of the institutes of civil law is the institution of representation. No one is forbidden to participate in the transaction through his own, duly authorized representative. That's where the most interesting begins. What is a properly authorized representative? Where does this come from and how can this be verified?

You can check it in various ways. Today many articles and recommendations have been written on this topic. Find them on the Internet is not difficult. Which is the best way to choose in the end, you, but it's still necessary to check.

In concluding treaties one should never rely on chance. Especially in our time and in our country. The legal consequences of concluding a deal by an unauthorized person, as well as a transaction concluded with abuse of authority, have been rewritten in the law as of 01.09.2013 in a new version. The most important of them are fixed in art. 183, 173, 173.1, 174 of the Civil Code of the Russian Federation. Please read before signing a more or less serious contract. On the right, the transaction must be prepared, just as a young man in love is preparing for the first date - carefully, pondering the details and possible consequences. On how to verify the authority to sign, I already wrote once. Here I will only add one saying "there are not many checks." Remember, it all depends on the degree of risk that you consider acceptable, and on the "value" that is at stake as a result of the signing of the contract.

So, exceeding authority is the first thing that is most often encountered in transactions. And your task is to find out. Try to understand, it's not just some kind of legal formality and not a fad. Checking credentials is your inherent duty when concluding a contract. Do not forget about it.

But this is not so bad, in our time it's easy to "run into" and at all to scammers who are posing themselves not for the person they are. This is the second thing that should be paid attention. Ask yourself, does the right person make a deal? Is that the person for whom he betrays himself? There are many questions, more answers, as always. You can, of course, seek advice and help from lawyers. And it will in many cases be the right decision. But it can also happen that at the right time, at the right time, you are left without a professional adviser. How then to be? In this case, try to at least adhere to a few elementary rules, which in most cases will help you avoid some common mistakes made at the conclusion of transactions.

1. Never make a deal without prior authorization, especially if the counterparty in the transaction is a little-known person (LLC "Buttercup", Pupkin IV, etc.).
2. All actions on the transaction try to fix on the paper signed by the parties (transfer of money, transfer of property, agreement on prepayment, etc.).
3. Do not sign documents whose meaning you do not understand (until you clarify their meaning for themselves).
4. If possible, check the counterparty through open sources (at least on the tax site), especially if the counterpart in the transaction is a little-known legal entity.

Adhere to at least these elementary rules, and they will help you avoid a number of gross abuses by the counterparty occurring in transactions. And this is your time and your means. Even compliance with the first rule (checking the authority to sign the contract) in many cases will stop the scammers from further action.