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Can you summarize MNST 336.3-402?
UNIFORM COMMERCIAL CODE > SIGNATURE BY REPRESENTATIVE.
Short Summary
This legal provision, under the Minnesota Statutes, specifically under the Uniform Commercial Code, governs the signature by a representative. It states that if a person acting or purporting to act as a representative signs an instrument using either the name of the represented person or their own name, the represented person is bound by that signature. The representative’s signature becomes the authorized signature of the represented person, and the represented person becomes liable on the instrument. However, if the representative signs their own name to an instrument and it is an authorized signature of the represented person, the representative may not be liable on the instrument if the form of the signature unambiguously shows that it is made on behalf of the represented person. If the form of the signature does not clearly indicate the representative capacity or the represented person is not identified in the instrument, the representative may be liable on the instrument to a holder in due course, unless it can be proven that the original parties did not intend the representative to be liable. Additionally, if a representative signs the name of the representative as the drawer of a check without indication of the representative status, and the check is payable from an account of the represented person identified on the check, the signer is not liable on the check if the signature is an authorized signature of the represented person.
Whom does it apply to?
Persons acting or purporting to act as representatives
What does it govern?
Signature by representative
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota