Asked by Iesha Tyler on May 10, 2024
Verified
Which of the following results in liability of the principal because the principal approved of an unauthorized agent's signature?
A) Ratification
B) Authorization
C) Acknowledgement
D) Rescission
E) Accord and satisfaction
Ratification
Ratification is the formal approval of an agreement, treaty, or contract, often by voting or through some legal process, making it officially valid.
Unauthorized Agent
An individual who acts on behalf of another party without having been given the legal or official authority to do so.
- Acquiring knowledge on legal consequences and established precedents associated with fraud and the use of unauthorized signatures on negotiable documents.
Verified Answer
HL
hamza LahlaliMay 13, 2024
Final Answer :
A
Explanation :
According to Uniform Commercial Code Section 3-403(a),if the principal decides to ratify,or approve of,the unauthorized agent's signature,the principal will then become liable for the instrument while the agent will escape personal liability.
Learning Objectives
- Acquiring knowledge on legal consequences and established precedents associated with fraud and the use of unauthorized signatures on negotiable documents.
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