A person who has been authorized to sign a negotiable instrument on behalf of another person is known as a(n) ________.
A) holder in due course
B) accommodation party
C) agent
D) principal

Question

Quizplus · Accepted Answer

An agent is a person authorized to sign a negotiable instrument on behalf of another person, known as the principal. A holder in due course is a person who has acquired a negotiable instrument for value, in good faith, and without notice of any defects or claims against it. An accommodation party is a person who signs a negotiable instrument to lend their credit to another party without receiving value in return.

A Person Who Has Been Authorized to Sign a Negotiable