A party can incur contract liability on a negotiable instrument only if that party's signature appears on the instrument.

Name: A party can incur contract liability on a negotiable instrument only if that party's signature appears on the instrument.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is known as the signature rule, which states that a party is liable on a negotiable instrument only if their signature appears on it. Without a signature, a party cannot be held responsible for the terms and conditions in the instrument.

A Party Can Incur Contract Liability on a Negotiable Instrument