What Does ‘Its’ Stand for in a Contract?

Key takeaways

• "Its" is not an acronym; it is a possessive pronoun used to indicate a signer's official title or role within an organization (e.g., "Its: CEO").

• Correctly filling out the "Its" field in a signature block clarifies that you are signing on behalf of a company, not in your personal capacity.

• Leaving the "Its" line blank or using an incorrect title can create ambiguity regarding your authority to bind the organization to the agreement.

• Digital platforms like Docusign eSignature automatically structure signature blocks to include this field, ensuring enforceability and audit trail clarity.

Contracts can be filled with technical terms and formal phrasing that make even experienced business professionals pause. But sometimes, the most confusing elements are the smallest words, like “its.”

This tiny word can play a crucial role in contracts and legal documents. But despite what some might assume, “its” is not an acronym or a specific legal term. It’s simply a word that shows possession or association.

Understanding the role of this small word is important because it helps to clarify relationships, responsibilities, and authority within agreements. Even minor misunderstandings can slow down negotiations or create disputes, especially in today’s fast-moving digital environment. By paying attention to terms like “its,” professionals can make sure contracts are smoothly executed, enforceable, and legally clear.

Defining ‘Its’ in a legal document

In contracts, “its” is a possessive pronoun used to indicate that something belongs to an entity, usually a company or organization. Here’s an example:

“The company and its subsidiaries agree to comply with all applicable laws.”

Here, “its” refers to the company and shows that the subsidiaries are connected to the company. It clarifies ownership and responsibility within the agreement, ensuring that there is no ambiguity about which entity the clause applies to.

Other examples of possessive pronouns in contracts

Beyond "its," legal agreements rely on a specific set of possessive pronouns to precisely map out the rights and obligations of every individual and entity involved. Using these terms correctly helps ensure that there is no confusion regarding which specific party is responsible for a particular action or asset. Use:

• “Their” when referring to multiple parties or individuals

• “His” or “her” when referring to a specific male or female individual

• “Our” when referring to the entity issuing the contract

• “Your” when addressing the other party or parties

Why ‘its’ matters in contracts

In contracts, businesses and individuals are treated as distinct legal entities, and using “its” in a legal document helps clearly attribute rights and obligations to that specific entity. This is especially important in clauses involving property, liability, or intellectual property. 

For example, if a contract says, “The client shall return all of the company’s property in its possession,” the “its” in this sentence refers to the client, specifying that the client must return anything belonging to the company that is currently in the client’s possession. 

Small words like these prevent disputes over interpretation and ensure that contractual obligations are understood by all parties involved.

Common points of confusion in contract signing

Despite its simplicity, “its” can be confusing. Some readers wonder what “its” stands for, assuming that it is an acronym or legal shorthand. Others see “Its: _______” next to a signature line and think it is optional or decorative.

In a contract’s signature block, “its” typically precedes the signer’s title or role. A signature block typically looks like this:

• By: [Signature]

• Name: [Name of signer]

• Its: [Title, e.g., CEO, Director]

Listing the correct title matters because it shows the signer’s authority to bind the organization. Using the wrong title—or leaving this field blank—can create ambiguity about whether the signer was legally authorized to sign on behalf of the organization.

‘By’ and ‘its’ in a signature block

Each element of a signature block, whether on paper or digital, serves a clear purpose. “By” goes next to the contract’s signature line and identifies the person signing the document, “Name” records the individual’s full name, and “Its” shows the signer’s official title  within the organization.

For example, a completed signature block might read:

• By: John Smith

• Name: John Smith

• Its: Chief Executive Officer

This format shows that John Smith is signing on behalf of the company in his capacity as CEO.

Why this matters when signing electronically

Digital contracts make executing agreements faster and more secure, but the same rules about signature authority still apply when you sign a contract online. 

Platforms like Docusign eSignature automatically structure contract signature blocks to preserve legal clarity, including the “Its” field. Completing this field correctly helps document the signer’s role and authority, supports a clear audit trail, and reduces ambiguity about who is legally bound by the agreement.

You can also add an extra layer of security and legal verification with Docusign Notary, available online 24/7.

Experience for yourself how Docusign eSignature can simplify the process of signing and sending contracts. Sign up for a free trial today.

Frequently asked questions

What does ‘by’ mean on a contract signature line?

“By” identifies the individual who is signing the contract. It signals who is executing the agreement on behalf of themselves or the organization.

Who is supposed to fill in the ‘its’ field when signing a contract?

The signer fills in the “its” field to indicate their official title or role within the organization. This helps document the signer’s authority to act on the organization’s behalf and reduces ambiguity about their capacity to bind the company.

What should go in the ‘its’ field if more than one person is signing for a company?

Each signer should enter their own title in the “Its” field. If multiple people sign, each title reflects the position of that individual in the organization.

Should digital signatures include an ‘its’ field, or is it only for paper contracts?

Digital signatures should include the “its” field whenever the person signing is representing an organization. Platforms like Docusign automatically structure signature blocks to include this field.

Can a contract still be valid if the ‘its’ line is left blank?

Yes, the contract may still be valid, but leaving the “its” field blank can create ambiguity about whether the signer had proper authority to sign documents on behalf of the business entity or organization, which could lead to disputes or delays in enforcement.

What happens if the wrong title is entered in the ‘its’ field?

Entering an incorrect title can raise questions about the signer’s legal power to bind the organization, potentially affecting the enforceability of the contract. It’s important to verify the correct title before signing.

Can I edit or remove the ‘its’ field in Docusign?

Docusign allows administrators to customize signature fields, but the “its” field should generally be completed to reflect the signer’s title. Removing or leaving it blank could reduce legal clarity.

How do you properly sign a contract as a company representative?

Sign using the signature line next to “By,” enter your full name in the “Name” field, and include your official title or role in the “Its” field. This confirms that you are signing on behalf of the organization and helps document your authority and reduces ambiguity about your capacity to bind the company.

Does using the ‘its’ field in a digital signature provide the same legal weight as a paper contract?

Yes. When completed correctly, digital signature blocks—including the “its” field—have the same enforceability as traditional paper contracts and are supported by audit trails and compliance records.