In a civil action involving a dishonored instrument, the signature of an agent or representative may bind the represented person. In other words, if a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent the represented person would be bound if the signature were on a contract. Accordingly, if the represented person is bound, the signature of the representative is considered to be the authorized signature of the represented person. Therefore, the represented person may be liable on the instrument, whether or not he or she is identified in the instrument. However, if a representative or agent signs the name of the represented person to an instrument and the signature is an authorized signature of the represented person, and the form of the signature shows unambiguously that the signature is made on behalf of an identified represented person; the agent will not be held liable on the instrument.

On the other hand, if the form of the signature does not show unambiguously to be made in a representative capacity or if the represented person is not identified in the instrument, the representative is liable on the instrument to a holder in due course that took the instrument without notice that the representative was not intended to be liable on the instrument. In other words, with respect to a third party, the representative is liable on the instrument, unless the representative proves that the original parties did not intend the representative to be liable on the instrument.

A cause of action for collecting a worthless check, draft or order of payment may have many complex issues. Therefore, you should consult with an experienced West Palm Beach collections lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.