Of the following roles that persons who sign a negotiable instrument can play,which do not have signature liability on the instrument?

Question

Quizplus · Accepted Answer

Qualified indorsers and those signing properly as an authorized agent do not have signature liability on the instrument. Accommodation signers and authorized signers may incur signature liability. Therefore, option A is incorrect. Option C includes authorized signers, who may incur signature liability, and option D includes accommodation signers, who may also incur signature liability. Option E is not correct because some parties may sign an instrument without incurring signature liability, such as qualified indorsers and authorized agents.

Of the Following Roles That Persons Who Sign a Negotiable