[Paying Debts] Felicia writes a $500 promissory note to Arut. Arut, who owes money to Gibson, endorses the note and gives it to Gibson. Gibson then pays off a debt to Branson with the $500 note. Branson, who has some business dealings with Felicia, writes "Pay to the order of Felicia" on the same $500 note, places as "X" where his signature should be, and transfers the note to Felicia, who endorses the note to Tonya.
-If, instead of endorsing the note to Tonya, Felicia had wanted to demand payment on the note from Branson, could Branson be held liable since he did not sign his name?
A) No, a signature is required to hold a party liable for a negotiable instrument.
B) Yes, because the "X" Branson wrote on the instrument could constitute a signature if Branson used it with the intent to authenticate the instrument.
C) No, because the "X" does not constitute a signature because it does not identify the endorser.
D) Yes, the "X" could constitute a signature, but only if Branson also printed his name on the note.
E) No, public policy would not support holding a party liable for payment if that party did not actually sign the instrument.
Correct Answer:
Verified
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