§ 25-3-402. Signature by representative.
§25‑3‑402. Signature by representative.
(a) If a person acting,or purporting to act, as a representative signs an instrument by signing eitherthe name of the represented person or the name of the signer, the representedperson is bound by the signature to the same extent the represented personwould be bound if the signature were on a simple contract. If the representedperson is bound, the signature of the representative is the "authorizedsignature of the represented person" and the represented person is liableon the instrument, whether or not identified in the instrument.
(b) If a representativesigns the name of the representative to an instrument and the signature is anauthorized signature of the represented person, the following rules apply:
(1) If the form of thesignature shows unambiguously that the signature is made on behalf of therepresented person who is identified in the instrument, the representative isnot liable on the instrument.
(2) Subject tosubsection (c) of this section, if (i) the form of the signature does not showunambiguously that the signature is made in a representative capacity, or (ii)the represented person is not identified in the instrument, the representativeis liable on the instrument to a holder in due course that took the instrumentwithout notice that the representative was not intended to be liable on theinstrument. With respect to any other person, the representative is liable onthe instrument unless the representative proves that the original parties didnot intend the representative to be liable on the instrument.
(c) If a representativesigns the name of the representative as drawer of a check without indication ofthe representative status and the check is payable from an account of therepresented person who is identified on the check, the signer is not liable onthe check if the signature is an authorized signature of the representedperson. (1899, c. 733, ss. 19 to 21; Rev., ss. 2168 to 2170;C.S., ss. 3000 to 3002; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)