Mike authorizes his agent,Ben to borrow a sum of $10,000 on his behalf from the National Bank.Ben signs his name to a note without disclosing that the signature was on behalf of Mike.Who is liable on the note?
A)Only Mike is liable.
B)National Bank is liable.
C)Both of them are liable.
D)Only Ben is liable.

Question

Quizplus · Accepted Answer

For example,if Principal authorizes Agent to borrow money on Principal's behalf and Agent signs her name to a note without disclosing that the signature was on behalf of Principal,Agent is liable on the note.

Mike Authorizes His Agent,Ben to Borrow a Sum of $10,000