Which of the following statements is true of signing a negotiable instrument?
A) An instrument in the form of a note must be signed by the payee who accepts the promise of the issuer.
B) An instrument in the form of a draft must be signed by the person giving the instruction to pay.
C) An instrument is not considered to be negotiable when the maker signs by writing his name on it.
D) A person or company cannot authorize an agent to sign instruments for it.

Question

Quizplus · Accepted Answer

To qualify as a negotiable instrument, an instrument in the form of a note must be signed by the person undertaking to pay (the maker) and an instrument in the form of a draft must be signed by the person giving the instruction to pay (the drawer). An instrument has been signed if the maker or drawer has put a name or other symbol on it with the intention of validating it.

Which of the Following Statements Is True of Signing a Negotiable