Sylvester, Acting as a Representative Agent for Jerry, Signs a Negotiable

question 37

Multiple Choice

Sylvester, acting as a representative agent for Jerry, signs a negotiable instrument with the signature-Sylvester, by Jerry, agent.What kind of liability does Sylvester have for this type of signature?

• A)He is not liable to the instrument.
• B)He liable to the payee.
• C)He is liable to Jerry.
• D)He is liable to the HDC of the instrument.

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Definitions:

Assets

Economic resources owned or controlled by an individual, corporation, or country, valued for their potential to provide future benefits.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or superior information compared to another, leading to an imbalance in power and potentially unfair outcomes.

Credit Histories

Records maintained by credit agencies that detail an individual's or entity's past borrowing and repayment actions, including loans, credit card use, and late payments, used to determine creditworthiness.

Borrowers

Individuals or entities that receive funds from a lender under the condition of repaying it over time, usually with interest.