An agent of a corporation who signs a negotiable instrument on behalf of a corporation is always personally liable.

Question

Quizplus · Accepted Answer

An agent can sign a negotiable instrument on behalf of a corporation without incurring personal liability if the agent clearly indicates the corporation's name and the agent's signature is accompanied by language indicating that the agent is signing on behalf of the corporation. This is known as signing in a representative capacity. However, if the agent signs the instrument in their personal capacity (without indicating they are signing on behalf of the corporation), they would be personally liable. Additionally, if the agent signs the instrument on behalf of the corporation but without authority to do so, they could also be held personally liable.

An Agent of a Corporation Who Signs a Negotiable Instrument