Whether a contract signed in someone else’s name is valid depends on the specific circumstances. If the contract is signed on behalf of the principal due to legal agency or entrusted agency, it is a valid contract; if it is a contract signed in the name of another person who exceeds the authority of the agency or has no authority to act as an agent, the validity is to be determined and will be subsequently ratified by the principal, otherwise it will be invalid. If an apparent agency situation occurs due to the principal's fault, the contract shall be valid, unless the other party is a malicious third party.
Consequences of signing a contract for others:
If you sign a contract for others without authorization, you are an unauthorized agent. No matter what happens in the contract, the person who signed the contract must be held accountable. Responsibility for the signed contract. If the signing act is legally authorized or ratified later, the signing act will be valid.
The standards for compensation for breach of contract are:
1. When signing the contract, the parties agreed that if one party breaches the contract, it can pay the other party based on the breach of contract at that time. The specific amount of liquidated damages can also be calculated based on the amount of compensation for losses caused by breach of contract. This liquidated damages has a certain punitive nature;
2. Liquidated damages generally have an upper limit. The upper limit cannot exceed 30% of the actual loss;
3. Generally, the amount of loss is calculated based on the market price in the place of performance.
Will the contract take effect once signed?
The contract will come into effect upon signature, unless otherwise agreed by the parties. Contracts can be signed in writing, and if the subject is qualified and there is no fraud, coercion, or collusion to harm the interests of the country and society, the contract will generally take effect when it is established in accordance with the law.
To sum up, if a contract is signed in the name of a third party, the contract will be valid if the third party has prior authorization from the actor or ratifies the contract afterwards.
Legal basis:
Article 171 of the "People's Republic of China and Civil Code"
The perpetrator does not After the power of agency, beyond the power of agency, or after the power of agency is terminated, the agency act is still performed without ratification by the principal, and it will not be effective against the principal.