Contracts

Under Iowa law, an agent's authority to sign a contract on behalf of a principal must be:

AAlways verbal to be binding
BIn writing under the Equal Dignities Rule when the contract being signed must itself be in writing✓ Correct
CWitnessed by two persons
DFiled with the IREC prior to use

Explanation

The Equal Dignities Rule in Iowa requires that if a contract must be in writing to be enforceable (such as a real estate contract under the Statute of Frauds), then the agent's authority to sign that contract on behalf of the principal must also be in writing.

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