Asked by Dylan Wright on Jun 09, 2024
Verified
An agent's signature can create liability for a principal as long as the agent is authorized to sign a negotiable instrument on behalf of the principal.
Agent's Signature
An agent's signature is the act of signing documents by a person (the agent) who has been authorized to act on behalf of another person or entity (the principal), indicating consent or agreement.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money to a specified person or the bearer under particular terms.
- Understand the role of an agent and principal in the context of negotiable instruments and the liability implications.
Verified Answer
FH
flower happinessJun 10, 2024
Final Answer :
True
Explanation :
An agent who is authorized by the principal to sign a negotiable instrument on behalf of the principal can bind the principal to the terms of the instrument, creating liability for the principal.
Learning Objectives
- Understand the role of an agent and principal in the context of negotiable instruments and the liability implications.
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