Elder, an authorized agent for Mullins, signs a negotiable instrument, "Mullins, principal, by Elder, agent." Mullins has primary liability and Elder has secondary liability on the instrument.

Question

Quizplus · Accepted Answer

Elder, by signing as an agent and clearly indicating the principal (Mullins) in the signature, does not assume personal liability unless specifically agreed upon. Mullins, as the principal, bears the primary liability.

Elder, an Authorized Agent for Mullins, Signs a Negotiable Instrument