If a person purporting to act as a representative signs an instrument by signing either the name of the represented person or the name of the signer, that signature binds the represented person to the same extent she would be bound if the signature were on a simple contract.

Question

Quizplus · Accepted Answer

This is the principle of vicarious liability in agency law. When a representative signs an instrument in the name of the represented person, it is as if the represented person signed the instrument themselves. This is based on the idea that the representative is acting within the scope of their authority and the principal (represented person) has given permission for them to do so.

If a Person Purporting to Act as a Representative Signs