Asked by Haddon Barrett on May 17, 2024
Verified
Which of the following is true regarding whether an agent's signature may satisfy the signature requirement for negotiability?
A) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability.
B) An agent's signature on behalf of his or her principal cannot bind the principal and does not satisfy the signature requirement for negotiability.
C) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability,but only if specific written authorization from the principal allowing the agent to act on the subject transaction is attached to the document.
D) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability,but only if the instrument is for an amount over $1,000.
E) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability,but only if the instrument is for an amount of $1,000 or less.
Agent's Signature
The signature of an authorized representative who acts on behalf of another person or entity, binding them in an agreement or contract.
Signature Requirement
The necessity for a formal, signed acknowledgment or agreement, often for legal or official purposes.
Negotiability
The quality of a document, particularly a financial instrument, that allows it to be transferred or assigned freely from one party to another.
- Comprehend the consequences of signatures and endorsements on negotiable instruments.
Verified Answer
Learning Objectives
- Comprehend the consequences of signatures and endorsements on negotiable instruments.
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