Sylvester,acting as a representative agent for Jerry,signs a negotiable instrument with the signature-Sylvester,by Jerry,agent.What kind of liability does Sylvester have for this type of signature?
A) he is not liable to the instrument
B) he is liable to the payee
C) he is liable to Jerry
D) he is liable to the HDC of the instrument

Question

Quizplus · Accepted Answer

When an agent signs a negotiable instrument on behalf of a principal and clearly indicates they are signing as an agent (e.g., "Sylvester, by Jerry, agent"), the agent is not personally liable on the instrument. This is because the agent has properly disclosed their representative capacity and the principal's identity.

Sylvester,acting as a Representative Agent for Jerry,signs a Negotiable Instrument