Who should sign an employment agreement to ensure validity?

• A. The Community Association's President Only
• B. Authorized Representatives of Both Parties
• C. Any Board Member
• D. The Association's External Auditor

Answer: (B)

Signing authority is what makes an employment agreement binding. For a contract to be valid, the person who signs on behalf of each party must have actual authority to bind that party to the terms. In a community association, the association typically operates through its board or an designated officer, while the employee signs to acknowledge acceptance. So the contract is enforceable only when both sides are represented by people who can legally bind them—i.e., authorized representatives of both parties.

That’s why having the agreement signed by authorized representatives from both sides is the best choice. It prevents questions about who has the power to commit the organization and ensures mutual assent to the terms.

Signing only by the president may not be sufficient if that person doesn’t have explicit signing authority for employment contracts. A single board member alone isn’t typically enough either, since they usually don’t have authority to bind the association without board approval. An external auditor has no role in forming an employment contract.