In order for the principal to be held liable when an agent signs a note on behalf of the principal,the principal's name must be shown on the instrument.

Name: In order for the principal to be held liable when an agent signs a note on behalf of the principal,the principal's name must be shown on the instrument.
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The UCC now states that if an agent signs an instrument truly on behalf of a principal, this principal can be held liable even if he or she is not "identified in the instrument" [3-402(a)].

In Order for the Principal to Be Held Liable When