When Agents sign negotiable instruments Flashcards
1
Q
The Principal’s liability
A
- The principal is not bound if the agent did not have the authority to sign on the principal’s behalf
- The principal may ratify the agent’s unauthorized signature if the principal adopts the signature and fails to deny the validity of it
- The principal may be estopped from denying liability against a HDC if the principal negligently contributed to the agent’s unauthorized signature
2
Q
For an unauthorized signature
A
The agent will be liable
3
Q
For an authorized signature
A
- The principal is liable when the agents signs the principal’s name only
- An authorized agent who signs an instrument that clearly indicates that the agent is signing in his capacity as an agent will not be liable on the instrument
4
Q
Forged Makers signature
A
Forger will be liable, not the “maker”
5
Q
Forged Drawer’s signature
A
Forger will be liable, not the “drawer”
6
Q
Forged indorsers signature
A
Forger will be liable, not the “indorser”