If a person has been negligent in signing a negotiable instrument,he/she can use lack of authorization as a reason for not paying the person who in good faith pays for it.

Question

Quizplus · Accepted Answer

Lack of authorization cannot be used as a reason for not paying a negotiable instrument. The person who signed the instrument is still liable for it, even if they were negligent in doing so.  However, if the instrument was forged or obtained through fraud, then lack of authorization may be a valid defense.

If a Person Has Been Negligent in Signing a Negotiable