Asked by Ninh Thi Thuy Trang on May 28, 2024
Verified
Can Prida's Jewelry be held liable for the note?
A) No, because Prida's name must appear on the note in order to be held liable.
B) No, because Charla intended to quit her job at Prida's.
C) No, because Charla did not write "as an agent of Prida's" on the note.
D) Yes, because Jirah knew that Charla worked for Prida's.
E) Yes, if Charla signed the note truly on behalf of Prida's, then Prida's can be held liable even if not identified on the note.
Promissory Note
A written promise to pay a specified sum of money to a certain individual or entity under agreed-upon terms.
- Understand the legal consequences of unauthorized signatures and their subsequent approval.
- Acquire knowledge about the duties and liabilities of agents and principals regarding negotiable instruments.
Verified Answer
KO
Kingsley OgarashiMay 29, 2024
Final Answer :
E
Explanation :
E is correct because in agency law, if an agent acts within the scope of their authority, the principal (in this case, Prida's Jewelry Store) can be held liable for the agent's actions, even if the principal's name is not explicitly mentioned on the document, as long as the agent was acting on behalf of the principal.
Learning Objectives
- Understand the legal consequences of unauthorized signatures and their subsequent approval.
- Acquire knowledge about the duties and liabilities of agents and principals regarding negotiable instruments.
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