Asked by
Alain Poitevin
on Nov 27, 2024Verified
A person can sign an instrument as an authorized agent of the drawer, but the instrument is not negotiable unless the drawer also signs it.
Negotiable
Refers to the quality of a document or instrument that allows it to be transferred or endorsed to another party, thus enabling the recipient to claim the rights specified in the document.
Authorized Agent
An individual or entity that has been given legal authorization to act on behalf of another person or entity in conducting business or legal affairs.
Drawer
The party that initiates a draft (writes a check, for example), thereby ordering the drawee to pay.
- Understand the concept and requirements of negotiable instruments.
Verified Answer
RU
Learning Objectives
- Understand the concept and requirements of negotiable instruments.