Themba stole Umi's checkbook and wrote a check for $100 forging Umi's signature. Under these circumstances, _____.
A) Themba, but not Umi, is liable on the check
B) Umi, but not Themba, is liable on the check
C) both Themba and Umi are liable on the check
D) the bank will be liable on the check

Question

Quizplus · Accepted Answer

Under the given circumstances, Themba, and not Umi, is liable on the check. If someone signs a person's name to a negotiable instrument without that person's authorization or approval, the signature does not bind the person whose name appears. Themba's forgery of Umi's signature operates as Themba's signature. Thus, if Themba cashed the check at the bank, he would be liable to the bank to make it good or if he negotiated it to a store for value, he would be liable to the store to make it good.

Themba Stole Umi's Checkbook and Wrote a Check for $100