How do you know if person agreeing to contract is agreeing as an individual or binding company?

Question

Related to this question What is the point of authority to sign clauses in contracts?

The simplest example I can think of is a work contract. Manager Bob signs a contract saying you will get paid $20/hr to work at Jo Pizza. Is the contract between you and Bob or you and Jo Pizza (an incorporated business)? Are there any common terms in contracts that make it clear? Do 'authority to sign' clauses have anything to do with it?

Is this why contracts are often written in the form:

This Agreement is entered into by and between Sam (an individual) and Jo Pizza (a Delaware Corporation).

Sam will make good pizza and get paid $20/hr. Payment happens on ...

In witness where of:

Sam's signature:

Bob's signature (general manager of Jo Pizza):

Answer 1

Is the contract between you and Bob or you and Jo Pizza (an incorporated business)?

It ultimately on what the contract indicates. In the scenario you outline (not the snippet, but the paragraph that starts with "The simplest example"), if Bob merely represents himself as manager without qualifying or specifying his role or capacity for contract purposes, there is nothing to override the presumption that the contract is between the hired person and Jo Pizza.

Are there any common terms in contracts that make it clear?

Perhaps, but that is irrelevant and it mostly depends on the drafting style. What matter is that reading the contract allows a reasonable person ascertain who the parties are.

Answer 2

Context

When I buy something from K-Mart, it is clear that my contract is with the corporate entity than operates that store and not with Pat, the checkout operator. Similarly, when I buy coffee from the corner coffee shop, my contract is with the operator of the business - this may actually be Zali the barrister or it may be someone else.

When I sign a written contract, that contract will spell out explicitly who the parties are.