accommodation parties and agency Flashcards
AP?
guarenteeing debt of another
requirements for AP
AP and D must sign
AP cannot be direct B from instrument value
what does AP liability depend on?
guaranteeing collection
guaranteeing payment
guaranteeing collection
secondary liabilty
guaranteeing payment
can seek pmt from either party
what can AP do if they had to pay?
seek reimbursement
when is an accommodation party’s liability disacharged?
party’s obligation to pay an instrument is secured by collateral
+
person entitled to enforce impairs value (not perfecting)
what defenses can AP raise?
their own defenses
accommodated parties defense except BK infancy or capacity
Principal liability depends on
if A is authorized
how can P be liable if A is not authorised
ratification = affirming prior conduct
what if A is authorized and only signs P’s name
A not liable
what if A is authorized and signed A’s name, saying he is P’s agent
A not liable
What if A is authorized and signs A’s name, no indication of P
A liable to HIDC who takes w/o notice of agency
not liable to non HIDC if A can prove OG parties didnt intend A to be liable
