Journal of Mutidisciplinary Issues
Vol 5 No 2 (2025): Journal of Multidisciplinary Issues

CONSTRUCTION OF AUTHORITY IN CORPORATE CONTRACTS: TENSION BETWEEN FORMAL STRUCTURE AND PRACTICAL FLEXIBILITY IN THE PERSPECTIVE OF GENERAL LAW

Chandra, William (Unknown)
Lie, Gunardi (Unknown)



Article Info

Publish Date
18 Jun 2025

Abstract

Authority constitutes a fundamental legal basis in corporate business agreements. In practice, it is not uncommon to find contracts signed by individuals lacking full formal legal legitimacy, either because they fall outside the corporate authority structure or lack proper power of attorney or official appointment. This issue raises legal questions regarding the validity of agreements that are substantively agreed upon but defective in legal representation. This study aims to analyze the boundaries of authority in corporate agreements and to evaluate the general legal approach toward legal acts undertaken by unauthorized individuals. The method employed is a normative juridical approach with qualitative analysis of primary and secondary legal materials. The findings indicate that although positive law mandates formal authority, corporate practice often tolerates actions considered commercially valid, especially when there is implicit acceptance or good faith on the part of the involved parties. These findings suggest that the general legal approach needs to be reconstructed to address the challenges of modern contractual practices. This research contributes to corporate legal practice by emphasizing the need to strengthen internal verification mechanisms and recommending the development of adaptive legal norms, while also enriching theoretical discourse on the limits of authority in contract law.

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Journal Info

Abbrev

JMIS

Publisher

Subject

Agriculture, Biological Sciences & Forestry Computer Science & IT Industrial & Manufacturing Engineering Law, Crime, Criminology & Criminal Justice Library & Information Science

Description

Journal of Multidisciplinary (JMIS), Focus and Scope is Information Technology, Psychology, Environmental Science, Data Science, Language and Linguistics, Education, Data Sensor and Networking, Information System, Gamification, Health Science. JMIS is published frequency quarterly (May, August, ...