If you are signing a document as an agent for a person, your signature must make it clear that it is you – not them – who are signing the document and that you are acting under a power of attorney. ____/s/___ Paragraph (b) deals with the question of when an agent who signs an act on behalf of a principal is bound by the instrument. The approach of former sections 3-403 was to clarify the form of signature that imposes or avoids liability. This approach was not satisfactory. There are many ways of ambiguity about a signature. It is better to establish a general rule. Paragraph (b)(1) states that if the form of the signature clearly indicates that it is made on behalf of an identified represented person (for example, “P, by A, treasurer”), the officer is not responsible. This is a practical standard that a court can apply. Clause (b)(2) partially amends former subsection 3-403(2). Paragraph (b)(2) refers to cases where the representative signs on behalf of a procuring entity but the form of signature is not covered by subsection (b)(1). The following cases are illustrative. In all cases, John Doe is the authorized representative of Richard Roe and John Doe signs a note on behalf of Richard Roe.
In any event, the original parties to the instrument intend Roe to be responsible for the instrument, but Doe will not be liable. 1. Where the signature shows that the signature is made in the name of the person represented referred to in the document, the representative shall not be responsible for the act. It is questionable whether this exception was justified by the wording of former Article 3 and there is no obvious political justification for this. The exception is rejected by paragraph (a), which refers to the Agency`s general rules. If P, the principal, authorizes A, the agent, to lend money in P`s name and A signs A`s name on a note without disclosing that the signature was made in P`s name, A is responsible for the act. However, if the person authorised to execute the ticket can also prove that P authorised A to sign on behalf of P, why should P not also be liable for the act? The recognition of P`s responsibility does not detract from the usefulness of negotiable instruments. In addition, P`s liability has the advantage of not having an instrument for which no one is responsible, even if it has been approved by P. This result could occur under former subsection 3-401(1) if an agent signed “as representative” but the memorandum does not identify the contracting authority. If the dispute arose between the agent and the beneficiary of the note, the agent could avoid liability for the bill of exchange by proving that the agent and the beneficiary did not intend the agent to be responsible for the bill of exchange at the time the bill of exchange was issued.
Former paragraph 3-403(2)(b). According to the prevailing interpretation of former § 3-401 (1), the contracting authority is not liable for the note under former § 3-401 (1), since the name of the contracting authority did not appear on the promissory note. Thus, no one was responsible for the note, although all parties knew that the note was signed by the representative on behalf of the principal. Under section 3-402(a), the principal would be responsible for the promissory note. In all cases where lawyers become aware that a person has offered to the court that they have consented to have their signature affixed to a document, or that they have signed a document when in fact they have not signed or consented, it is the lawyer`s responsibility to notify the court without delay and to demand: that the document be deleted. *A copy of the signature page with the original signatures is attached as Appendix 1. Third, the lawyer whose username and password are used to submit the document can obtain the original signatures of all lawyers filing the document, scan only the signature page, and file it as an attachment to the document. In this case, the electronic version should contain wording similar to the following: If you are signing as a power of attorney for a person, you should note that you are signing on their behalf.
2. Subject to paragraph (c) of this Division, if (i) it is not clear from the form of the signature that the signature is in its capacity as representative or (ii) the represented person is not identified in the document, the representative is liable on the document to a holder who took possession of the document in good time without knowing that the agent did not intend: to be responsible for the document, on the act. In respect of any other person, the representative is responsible for the act, unless he proves that the original parties did not intend him to be responsible for the document. Before signing, you should ask if there is a preferred format for your signature. Sometimes banks or other institutions only accept a power of attorney signature if it is written in a certain way. You should never sign your name or the name of the other person without indicating that you are signing under a power of attorney. Failure to add the proxy language to your signature. If you sign a document on your own behalf without indicating that you are acting under a power of attorney, you may be held personally liable for the transaction. If you only sign the customer`s name, you face criminal or civil penalties for fraud or forgery. The correct way to sign as an agent is to first sign the client`s full legal name, then write the word “of” and then sign your name.
You can also show that you are signing as an agent by writing after the signing: Agent, De facto Attorney, Power of Attorney or Power of Attorney. 3. Point (c) shall concern control cases. It indicates that if the cheque identifies the person represented, the agent signing in the signature line does not have to indicate the status of the agency. Virtually all cheques used today are in a personalized form that identifies the person from whose account the cheque is drawn. In this case, no one is fooled into thinking that the person signing the cheque should be responsible. This paragraph seeks to set aside cases decided under former article 3, such as Griffin v. Ellinger, 538 S.W.2d 97 (Texas 1976). This article contains general legal information and does not provide legal advice. Rocket Lawyer is not a law firm or a substitute for a lawyer or law firm. The law is complex and changes frequently.