Sylvester, acting as a representative agent for Jerry, signs a negotiable instrument with the signature-Jerry, by Sylvester, agent. What kind of liability does Sylvester have for this type of signature?
A) He is not liable on 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

Sylvester, by signing "Jerry, by Sylvester, agent," clearly indicates that he is acting in a representative capacity for Jerry. This means Sylvester does not have personal liability on the instrument, as he has properly disclosed his agency relationship.

Sylvester, Acting as a Representative Agent for Jerry, Signs a Negotiable