Question
Larry Jones is an authorized agent for ABC Corp., authorized to negotiate a loan for business equipment on ABC Corp.s behalf. Larry goes to Big
Larry Jones is an authorized agent for ABC Corp., authorized to negotiate a loan for business equipment on ABC Corp.s behalf. Larry goes to Big Bank and introduces himself as ABC Corp.s agent and lets the bank loan officer know he is there to secure financing for ABC Corp. Larry successfully negotiates a loan with Big Bank for $100,000 with a fixed interest rate of 4% for ten years, payable in monthly installments. Larry signs his name to the note and ABC Corp.s name without and indication of his agency. Is Larry liable on the note to any subsequent holder in due course of the note?
a. | Yes, because Larry's signature on the note for ABC Corp. is ambigous. | |
b. | Yes, as long as the holder in due course has no notice that Larry was only an agent for ABC Corp. | |
c. | Yes, unless Larry can prove the original parties to the note Big Bank and ABC Corp. did not intend for him to be bound on the note. | |
d. | A and B only. | |
e. | A, b and c are all correct. |
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