A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more mutually agreeing parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date, and the activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contracts are widely used in commercial law and form the legal foundation for transactions across the world.

A signature block is a standard provision in a contract that serves an essential function in determining the validity of a contract. A typical signature block to a contract will include the name of the person signing the contract, the name of the party on whose behalf the person is signing the contract, the party’s entity type and state of formation, the capacity in which the person is signing, the role of the party’s in the contract, the date on which the contract was signed, and a line containing the actual signature of the person.

The words "Its" and "By" on a contracts signature line refer to the persons title within the company that is signing the contract. "Its" is intended to designate what position the signer holds at the company, in order to give evidence that this person is authorized to sign on behalf of the company. "By" is used to indicate the name of the person signing on behalf of the company. It is important that the individuals who sign contracts clarify that they are signing on behalf of a legal entity such as a corporation or LLC. Inside a signature block, this is denoted by including the word “By” before the signature and including the signer’s title underneath their signature.