Can a branch sign a contract?

Branches can sign contracts with foreign countries, and can conduct business and sign contracts with foreign countries in their own names. When signing a contract, the branch company signs the contract within the scope authorized by the head office, which conforms to the form and conditions stipulated by law and does not need to be stamped with the seal of the head office. It is an effective contract. However, the signature of the head office is generally required, and the branch company is not responsible for the outside world, which shall be borne by the head office.

I. Conditions and standards for establishing branches

1, with qualified name;

2. The business place is outside the company's domicile;

3. The business scope of the branch is not beyond the business scope of the company;

4. Where laws, administrative regulations and decisions of the State Council stipulate that the establishment of branches shall be subject to examination and approval, it shall be approved by the relevant departments.

Second, the litigation status and civil liability of the branch

1. If the branch no longer exists, or is closed or revoked, it shall be taken as the defendant, and the Head Office shall bear the civil liability of the original branch. Because the plaintiff sued, although the branch was closed or revoked, its ability to bear civil liability was eliminated, and it no longer had the qualification of litigation subject, and its rights and obligations should be directly exercised or assumed by its head office.

2. If a branch company has strong solvency, it shall be the defendant only, and the civil liability shall be borne by the branch company. Because such branches generally have a strong ability to bear civil liability.

And the head office is often located in the field, in the branch.

If the head office is still the defendant in the case of insufficient solvency, it will be neither convenient for the parties to participate in the litigation nor convenient for the court to hear.

3. In the case that a branch exists but its solvency is poor or nonexistent, the plaintiff may take the branch and the head office as co-defendants, or only the head office as defendants. Because the branch has been registered in accordance with the law and obtained a business license, although it does not have the qualification of a legal person, it still has relative independence and certain capacity to bear civil liability. The people's court shall ascertain the facts and judge the branch company to bear civil liability, and the head office shall bear supplementary liability. That is, when the property of the branch company is insufficient to bear civil liability, it shall be borne by the head office.

Legal basis: People's Republic of China (PRC) Company Law.

Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.

A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.

Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.