What Does “Its” & “By” Mean On A Contract’s Signature Line? (7 Examples)

A contract’s signature line can look confusing if you’re not familiar with how they’re structured. You don’t want to make a mistake when signing a professional contract. However, we’ll show you the differences and why you might see “its” and “by” in the signature line, as well as what you should sign in each one to get it correct.

What Does “Its” And “By” Mean On A Contract’s Signature Line?

“Its” should be used when you’re signing on behalf of a company, and you need to list your title. It can sometimes be written as “title,” though this is often reserved for individuals representing themselves. “By” should be used when you’re signing on behalf of a company, and it is where your actual signature goes. It’s important to put the two together on a signature line to show you have the correct authorization to be signing the contract.

There isn’t much professionalism to it without the “its” line and the “by” line on the contract. Ensuring that the correct person is signing is the first step to ensuring that someone will get the correct deal. If anyone in a company with any title can sign anything, it can lead to disastrous consequences for the companies involved in the contract signing.

Typically, people signing contracts are higher-ranking members of the company. This will be covered with the “its” or “title” line. The two lines are used interchangeably. You won’t see them both at the bottom of a contract in the signature line. However, you’ll always see “by” at the bottom on its own. There isn’t anything else that can replace “by.”

Example Contracts Using “Its” And “By” (Filled Out)

Rather than just talking to you about it and understanding it, we thought we’d show you some examples. This way, you can see what to expect at the bottom of the contract. After looking through these examples, you’ll know where to sign your name and your title, so make sure you’re paying attention. The last thing you want is to sign the contract incorrectly and not consider our advice.

NAME OF COMPANY IN CHARGE OF CONTRACT

By: John Doe (a signature is signed here)

Print: John Doe (the printed name is put underneath signature for clarification)

Its: CEO (job title goes here of the person representing the company in the contract)

NAME OF COMPANY IN CHARGE OF CONTRACT

By: Jane Stone (a signature is signed here)

Print: Jane Stone (the printed name is put underneath signature for clarification)

Its: Director (job title goes here of the person representing the company in the contract)

NAME OF COMPANY IN CHARGE OF CONTRACT

By: ________________

Print: ________________

Its: ________________

If you’re still struggling to understand why we’re using “its” to show the title, let’s talk you through that a little. Basically, “its” is the possessive form of “it.” We use it when something owns something else in a sentence. However, in the contract signature line, there isn’t a sentence to show this. That’s why we refer to earlier in the contract to get an idea of the possessive form of “it.”

So, the object that owns something is considered the represented company. The object being owned is the title of the person doing the title. Therefore, you could think of it like this sentence. “The signer is John Doe of Company 1, and John Doe is its CEO.” See how we use “its” in this way to show the possessive form. That’s why “its” is used instead of “title.”

Examples Contracts Not Using “Its” And “By”

But there are a few examples that we can give you where neither “its” or “by” are used and are instead swapped to something else. Every company is different, meaning that every company comes up with different ways to write their contract’s signature line. That’s why you need to know about these examples, too, just so you can still fill them in correctly should you ever come across one of these as an example.

NAME OF COMPANY IN CHARGE OF CONTRACT

Name: ________________

Printed: ________________

Title: ________________

Here, we see “by” replaced by “name” to show that’s where the name needs to go. “Its” is replaced by “title” to show that’s where we must put the title.

NAME OF COMPANY IN CHARGE OF CONTRACT

Signed: ________________

Printed: ________________

Position: ________________

Instead of “by,” we’re seeing “signed” written this time. This gives us an indication to sign it with our name. Also, we use “position” instead of “title” to show our position in the company.

NAME OF COMPANY IN CHARGE OF CONTRACT

Signed by: ________________

Printed: ________________

Role: ________________

Instead of “by,” this time, we’re using “signed by.” This is very similar to “signed” but comes as two words. It’s the easiest way to see it written on a signature line. Also, “role” replaces “title” in this contract form.

NAME OF COMPANY IN CHARGE OF CONTRACT

Signature: ________________

Printed: ________________

The: ________________

Rather than worrying about what “by” or “name” might mean, this contract type asks for a “signature” by using the word. Also, we use “the” here instead of “its.” This is perhaps the least common variation of “title,” but it can occur. Typically, someone will be prompted if they see this and is unsure what it means.

NAME OF COMPANY IN CHARGE OF CONTRACT

Representative: ________________

Printed: ________________

Authority: ________________

Here, we say “representative” to ask for the signature of the person representing the company. We also use “authority” to ask for their specific position in the company to find out whether they can sign the contract.

Why “Its” Is Used Instead Of “Title” In A Contract

So, we’ve touched on the idea behind “its” instead of “title” in a contract, but let’s elaborate on why it’s used. Basically, rather than writing out “title” in the contract, we use “its” to ask for the position of the person signing. “Its” is the possessive form of “it,” making it so that we can ask for the possessed role or title of the person doing the signing.

It is used to designate the position of the signer within the company. This gives both parties signing the contract the information they need as to whether the correct authority is given to the contract signer. If this is not the case, contract discussions can halt until they find someone with the correct title and authority.

Why “By” Is Used Instead Of “Signature” In A Contract

So, why do we use “by” instead of “signature” in a contract? There are a few answers to this question, so we’ll touch on what we know. For starters, it might sound a bit cheap, but it saves ink. Just look at how much shorter “by” is compared to “signature.” Sure, that won’t add up to all that much in ink costs, but the more contracts that are printed, the more you’re going to have to pay over time.

Also, many people are already familiar with a lot of the business practices associated with signing contracts. That’s why people will look at “by” on a signature line and see that they need to sign their name there. Even in more informal situations where someone might need to sign a document for another reason, we’re more familiar with the word “by” to ask for our signature than the word “signature.”

However, the final decision comes down to the company. There isn’t necessarily one way over the other that’s superior. Some companies do prefer to opt for “signature” over “by” still. Yes, “by” is the more popular of the two to come up, but it’s up to the company to choose how they lay out their contract. That’s why it was so important to talk you through all the different examples that you may come across in your time signing contracts for your company.

Other Words That May Confuse You In A Contract

It’s no surprise that contracts are confusing pieces of paper when we see them in front of us. They’re often longwinded and cover more than we think they need to. Any respectable business practice needs to read through an entire contract, but that’s when confusing words might start to appear. So, we thought we’d touch on a few of the most common words that may confuse you in a contract to see if we can explain them better for you.

• Assure and ensure

This is a common confusion between two words that are very similar but come with different meanings. Assure means to convince someone, but ensure means to make certain.

• Affect and effect

This is a common mistake not just in contracts, though it’s most common to come up inside one. Affect means to alter or change, whereas effect means a result or change brought about by something.

• i.e., or e.g.

These are common in a contract when including a list and trying to save space and time not to list everything. However, people typically confuse the two. “I.e.” comes before a list but means “that is.” “E.g.” also comes before a list but means “for example” instead. Make sure you know the difference between those two before you read them and get them confused.