Common use of Capacity and Authority of Obligors Clause in Contracts

Capacity and Authority of Obligors. It is not necessary for Obligee to inquire into the capacity or powers of Obligors or the officers, directors, partners, or agents acting or purporting to act on their behalf, and any indebtedness made or created in reliance on the professed exercise of those powers shall be guaranteed under this agreement. If one or more of the Obligors is a partnership, the words "Obligors" and "indebtedness" as used in this agreement include all successor partnerships and their liabilities to Obligee.

Capacity and Authority of Obligors. 4. It is not necessary for Obligee to inquire into the capacity or powers of Obligors or the officers, directors, partners, or agents acting or purporting to act on their behalf, and any indebtedness made or created in reliance on the professed exercise of those powers shall be guaranteed under this agreement. If one or more of the Obligors is a partnership, the words "Obligors" and "indebtedness" as used in this this, agreement include all successor partnerships and their liabilities to Obligee.