Asked by Teesean Patterson on Jul 04, 2024
Verified
Under the UCC, if an agent enters into a contract that is an negotiable instrument, the principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in ________.
A) a representative capacity.
B) the presence of a notary.
C) the presence of the disclosed or undisclosed principal.
D) a bank or an institution that would accept the negotiable instrument.
E) connection with an auxiliary promise to the contract.
Negotiable Instrument
A written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another.
Representative Capacity
Acting on behalf of someone else or a group in a legal or official matter.
- Learn about the framework of agency, the functions of principals, and the basis of principals’ accountability for agents’ actions.
Verified Answer
Learning Objectives
- Learn about the framework of agency, the functions of principals, and the basis of principals’ accountability for agents’ actions.
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