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When signing a contract, how can we make sure the other party's signature is real? what if that person scribbles some random signature? And if disputes arises he can claim that it was a forgery.

What does the law has to say about these kind of situations? what preventative measures can you take?

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This is what notarization is for. If you are concerned about forgery - have the document signed in front of a notary and notarized. The notary will insist that the person provide some form of identification and attest that the person actually signed the document.

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Where are you located? Who are you doing business with? These are very important details you are omitting. Without further details there is only one answer: if you are that worried, do not do business with this person/company.

In my career I have learned not to do business with people I would not do a handshake agreement with and sleep well after.

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