Asked by Bridget Stokes on Jun 29, 2024
Verified
A representative is personally liable to a holder in due course that took the instrument without notice that the representative was not intended to be liable if:
A) the instrument identifies the represented person.
B) the form of the signature does not show unambiguously that the signature was made in a representative capacity.
C) the instrument categorically states that the representative would be liable even if the signature has been authorized.
D) it is proved that the original parties did not intend her to be liable on the instrument.
Representative Capacity
Acting on behalf of another person or entity, holding the authority to make decisions, enter agreements, or perform actions for them.
Holder In Due Course
A legal term for a party who has acquired a negotiable instrument in good faith and for consideration, and thus has certain protections against claims and defenses that could be raised against the original issuer.
Categorically States
Expresses or asserts something in a manner that is clear and unequivocal.
- Recognize the significance of representation and personal liability in transactions involving negotiable instruments.
Verified Answer
KJ
kadeem josephJun 30, 2024
Final Answer :
B
Explanation :
Except for the check situation noted above,a representative is personally liable to a holder in due course that took the instrument without notice that the representative was not intended to be liable if the form of the signature does not show unambiguously that the signature was made in a representative capacity.
Learning Objectives
- Recognize the significance of representation and personal liability in transactions involving negotiable instruments.