When a representative signs an authorized signature to an instrument, then the representative is not bound provided the signature shows unambiguously that the signature was made on behalf of the represented person who is named in the instrument.

Question

Quizplus · Accepted Answer

This statement is correct as per the principle of agency law. A representative is not personally bound if they sign an authorized signature on behalf of the represented person, as long as it is clear that the signature was made on behalf of the represented person.

When a Representative Signs an Authorized Signature to an Instrument