Liability of agent signing
Full Text
Liability of agent signing.—An agent who signs his name to a promissory note, bill of exchange or cheque without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal responsibility, is liable personally on the instrument, except to those who induced him to sign upon the belief that the principal only would be held liable.
Plain English Summary
Holds agents personally liable on negotiable instruments they sign unless they explicitly state they are signing as agents or exclude personal liability.
Key Legal Elements
- Agent signing must state they are signing as agent to avoid personal liability
- Alternatively, they must specify that they do not intend to incur personal responsibility
- An exception applies only towards parties who induced the agent to sign believing only the principal would be liable
Practical Note
Strict rule of personal liability. If a director signs a company cheque or a partner signs a firm promissory note, they must specify their designation or state they are signing 'for and on behalf of [Company Name]', otherwise they risk personal liability under Section 28 & Section 138.
हिंदी पाठ
हस्ताक्षर करने वाले एजेंट का दायित्व।—एक एजेंट (अभिकर्ता) जो किसी वचन-पत्र, विनिमय-पत्र या चेक पर यह दर्शाए बिना अपने नाम से हस्ताक्षर करता है कि वह एजेंट के रूप में हस्ताक्षर कर रहा है, या कि उसका इरादा व्यक्तिगत जिम्मेदारी उठाने का नहीं है, लिखत पर व्यक्तिगत रूप से उत्तरदायी होगा, सिवाय उनके जिन्होंने उसे इस विश्वास पर हस्ताक्षर करने के लिए प्रेरित किया कि केवल प्रधान (principal) को ही उत्तरदायी ठहराया जाएगा।