If either Party is a corporation, LLC, trust, partnership, or similar entity, then they represent more than one person. Therefore, anyone could end up signing the Lease, so this paragraph ensures that the person signing is authorized. The Lessor can request a corporate resolution from the Lessee to confirm this. This document affirms that the individual who signed the Lease had the authority to do so on behalf of the corporation.
Furthermore, if the Lessee is more than one person (i.e. two brothers), then both are individually responsible for the Lessee’s obligations stated in the Lease. Amendments and other ancillary documents can be signed by just one of the Lessees, but it’s advisable to obtain signatures from all Parties. When signing the Lease, both Parties do not have to be in the same room or sign the same copy, but it helps to prevent confusion by having both signatures on one Lease agreement.