Under the UCC, If an Agent Enters into a Contract

question 72

Multiple Choice

Under the UCC, if an agent enters into a contract that is an negotiable instrument, the principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in ________.

• A) a representative capacity.
• B) the presence of a notary.
• C) the presence of the disclosed or undisclosed principal.
• D) a bank or an institution that would accept the negotiable instrument.
• E) connection with an auxiliary promise to the contract.

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Definitions:

Cumulative Cash Surplus

The total amount of cash that a business has generated over a certain period, after accounting for all cash inflows and outflows.

Financial Foreclosure

The process by which a lender takes possession of a property used as collateral for a loan that is in default.

Net Cash Flow

measures the difference between a company's cash inflows and outflows within a specific period, indicating its overall liquidity position.

Cumulative Surplus

The total accumulated excess of income over expenses and losses over a period.