Olivia is Physicians Clinic agent and is not authorized to sign checks or notes on its behalf. Despite the lack of authority, Olivia issues a note "payable to the order of Quik Loan Company [signed] Physicians Clinic, by Olivia." Liability on this note extends to

Question

Quizplus · Accepted Answer

Olivia is personally liable for issuing a note without authorization. Physicians Clinic is not liable because Olivia did not have authority to act on its behalf. Quik Loan may have a claim against Olivia, but only if they did not have knowledge that Olivia was not authorized to sign on behalf of Physicians Clinic.

Olivia Is Physicians Clinic Agent and Is Not Authorized to Sign