The Importance of Using Your Company Name in Business Contracts

Using your full legal company name in contracts, invoices, and correspondence is not a formality. It is a legal requirement in British Columbia, and failing to comply can expose business owners and representatives to personal liability.

For businesses facing a breach of contract or unpaid invoices, this issue often surfaces during enforcement. Our contract dispute lawyers in Vancouver will frequently see claims weakened or dismissed because the company failed to clearly identify itself as a limited liability entity.

Learn more about Contract Disputes here

What the BC Business Corporations Act Requires

The BC Business Corporations Act, SBC 2002, c.57, mandates the use of a company name as follows:

Name to be displayed

27 (1) A company or extraprovincial company must display its name … in legible English or French characters,

(a) in a conspicuous position at each place in British Columbia at which it carries on business,
(b) in all its notices and other official publications used in British Columbia,
(c) on all its contracts, business letters and orders for goods, and on all its invoices, statements of account, receipts and letters of credit used in British Columbia, and
(d) on all bills of exchange, promissory notes, endorsements, cheques and orders for money used in British Columbia and signed by it or on its behalf.

Why Using Your Company Name in Business Contracts Matters in Payment and Contract Disputes

This statutory requirement exists so that individuals know they are dealing with a limited liability company, not a sole proprietor or unincorporated business. When that distinction is unclear, the legal consequences can be serious.

If someone unknowingly deals with a company and suffers a loss, the company representative who failed to disclose the corporate status may become personally liable. Courts have consistently held that transparency about corporate identity is essential.

In a recent case, a company attempted to recover an overdue invoice, but its claim was dismissed because it could not prove that the debtor knew they were dealing with a company. The evidence showed the debtor believed they were dealing with an unincorporated entity. As a result, the company was unable to enforce the debt.

How Legal Advice Can Protect Your Business

Clear use of your company name across contracts and communications strengthens your position in the event of a breach of contract and reduces risk when disputes arise. A business agreement disputes lawyer can help ensure your documents meet statutory requirements and are enforceable if litigation becomes necessary.

Addressing these issues early can prevent costly disputes and protect both your business and personal liability.